It can be devastating when you trust someone with your money, only to find out that they’ve misappropriated it for personal gain. That’s exactly what customers investors of Jeffrey Higgins, a former financial advisor, have claimed. Accused of fraudulent activities, including misappropriating client funds and engaging in undisclosed business practices, Higgins is now banned from the industry. If you or someone you know is a victim of such fraud, it’s crucial to understand how these situations unfold and your options for seeking justice and recovering your losses.
The Allegations Against Jeffrey Higgins
Jeffrey Higgins, who was registered with Western International Securities and Financial West Group, has been the subject of several investor complaints. These accusations include:
Misdirection and Misappropriation of Funds: Higgins allegedly misdirected client investments, taking funds that were meant for clients and using them for his personal gain, dating back to his time at a previous firm.
Undisclosed Outside Business Activities (OBAs): Higgins engaged in business activities that were not approved by his employers, including selling securities outside of the firm’s supervision.
Selling Away: This practice refers to when an advisor offers investments not approved by their employer. These investments can be legitimate or, in some cases, fraudulent schemes like Ponzi schemes.
What Happened to Jeffrey Higgins?
In June 2024, Western International Securities terminated Higgins for cause after he admitted to misappropriating client funds and engaging in other unethical conduct, which began as early as 2007 at his previous firm.
In July 2024, Higgins was permanently barred by FINRA after failing to respond to their requests for documents and testimony. This permanent ban means that Higgins is no longer allowed to work in the securities industry.
What is “Selling Away”?
“Selling away” is a serious violation of securities laws. It happens when an advisor sells investments to clients that haven’t been approved by their employer. These can range from legitimate private deals to fraudulent schemes. In many cases, the investor is unaware that these investments are improper until much later.
The practice of selling away is a serious breach of trust and often occurs when brokerage firms fail to properly supervise their employees. Here’s why that matters:
Brokerage Firms’ Responsibility: Federal securities laws require firms to supervise their brokers to prevent this type of misconduct. Failure to supervise properly can allow brokers like Higgins to take advantage of unsuspecting clients.
The Dangers of Unsupervised Brokers: Without proper oversight, advisors may push unsuitable investments that could be high-risk or outright fraudulent, leaving investors with significant losses.
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How Did the Fraud Affect Investors?
Higgins’ clients were misled into trusting him with their investments. As part of his fraudulent activities, many of these investors likely didn’t realize that they were being sold unauthorized, and potentially unsafe, investments. Here’s how selling away can impact victims:
Loss of Investment: Investors may lose their entire investment or suffer significant financial damage.
Emotional and Psychological Toll: The betrayal of trust and the financial strain can take a heavy toll on victims and their families.
Difficulty Recovering Funds: Since these investments were not approved by the firms, recovering funds can be complicated and challenging.
How Can Meyer Wilson Help?
If you were an investor who lost money due to the actions of Jeffrey Higgins or another advisor who engaged in selling away, you have legal options to recover your losses. Meyer Wilson has extensivehas an extensive experience in representing investors defrauded by financial advisors. Here’s how we can help:
Investigate Your Case: Our team will carefully review your situation and gather the necessary evidence to build a strong case.
Hold Wrongdoers Accountable: We will take action to hold those responsible for the misconduct accountable.
Recover Your Losses: Our goal is to help you recover as much of your lost investment as possible through legal action.
Our lawyers are nationwide leaders in investment fraud cases.
What Should You Do if You Suspect Fraud?
If you suspect that you’ve been a victim of fraud or selling away, here are the steps you can take:
Document Everything: Keep all communications, contracts, and transaction records related to the investment.
Report the Fraud: Contact regulatory bodies like FINRA, or the SEC, or your state’s securities division, to report your advisor’s actions.
Seek Legal Advice: Consult with a securities fraud attorney to discuss your case and explore your legal options for recovery.
Contact Meyer Wilson today to learn more about how we can help you take action and recover your losses.
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