Call Now For a Free Consultation:
(614) 532-4576
Nationwide Representation

SEC Accuses Thomas E. Andrews of Investor Fraud and Misappropriation of Funds

Thomas Edward Andrews, formerly a stockbroker with LPL Financial, is currently serving time in federal prison after pleading guilty to securities and mail fraud. The Securities and Exchange Commission has recently charged him with investor fraud, claiming he misappropriated more than $8 million from 23 investors from 2010 through 2015.

On April 5, the SEC filed a complaint in a Utah federal court alleging that Thomas Andrews defrauded investors by convincing them to liquidate their investments and put their money into fictitious investment accounts called “the Jackson Trust” and “the Lincoln.” He claimed these accounts were guaranteed to provide a good return on their investments.

These accounts were actually bank accounts that Thomas Edwards would use to transfer funds to himself, the SEC complaint alleges.

According to the SEC, Thomas Andrews misappropriated more than $8 million from the investors. He also allegedly paid his former assistant Scott Christensen $1 million for his assistance in perpetuating the investor fraud.

“From 2010 until the fall of 2015, Andrews spend the investor funds on personal items such as cars, mobile homes, alimony, trips to Disneyland, guns, dining out and numerous stays at luxury resorts in California,” the investor fraud lawsuit states.

The victims of the investment fraud scheme reportedly included Utah residents from a rural community, most of whom were unsophisticated in securities, the SEC complaint states.

“Almost all of Andrews’ victims were people he had known while growing up in Nephi, Utah,” the SEC’s investor fraud lawsuit states. “These individuals were unsophisticated in investment matters and accustomed to doing business on a handshake.”

In December 2016, Thomas Andrews was sentenced to 97 months in prison and was ordered to pay more than $8.34 million in restitution.

Scott Christensen is also reportedly serving time in prison for securities fraud and for making a false statement to a federal agent. He was ordered to pay $1 million in restitution.

How to Avoid Investor Fraud

Investor fraud can have devastating effects on unsuspecting investors and their finances. Despite laws and regulations designed to protect investors from stockbroker misconduct, there are unscrupulous stockbrokers who seek to take advantage of inexperienced investors.

Be careful before you invest. A good rule of thumb is that if something seems too good to be true, it probably is. Ask questions and do some research before you entrust your hard-earned money to a stockbroker. A trustworthy stockbroker will respect your desire to take your time before making a decision and won’t pressure you to act right away.

Some stockbrokers come across as trustworthy and likeable but use these traits to trick investors into making poor decisions. Before you invest, check out the person’s qualifications to make sure you don’t become the victim of a scam.

If you suspect you have fallen victim to investment fraud, contact the experienced investor fraud attorneys at MeyerWilson to learn about your legal options. Our team of investment fraud lawyers will help you understand your rights and seek to recover any financial losses you may have suffered. Call us today or fill out our online form to request a free case evaluation.

Related Posts:

The information contained in The Firm’s posts on its blog, fraud alerts, investigations or elsewhere on the site is based upon information obtained from other sources including, but not limited to, news outlets and federal, state, and regulatory agency filings. All suspects and subjects of postings herein are presumed innocent until proven guilty in a court of law or administrative action and any and all crimes are alleged until a court or regulatory agency finds otherwise .

Share This Story
If you found the information provided by this article useful, consider sharing to your social media channels to help others in their search for reliable resources.
Consult with Our Legal Team
There is never a cost associated with a consultation
Atlanta Office

945 East Paces Ferry Road, Suite 2275
Atlanta, GA 30326
Columbus Office

305 W. Nationwide Blvd
Columbus, OH 43215
Meyer Wilson
New Orleans Office

900 Camp Street 
Suite 337
New Orleans, LA 70130
Los Angeles Office

2029 Century Park East,
Suite 400N
Los Angeles, CA 90067
Cleveland Office

4781 Richmond Rd.
Suite 400
Warrensville Heights, OH 44128
Bloomfield Hills Office

41000 Woodward Ave.,
Suite 350
Bloomfield Hills, MI 48304
Quick Links
The information contained in this Website is provided for informational purposes only, and should not be construed as legal advice on any subject matter. No recipients of content from this site, clients or otherwise, should act or refrain from acting on the basis of any content included in the site without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from an attorney licensed in the recipient's state. Read More
The information contained in this Website is provided for informational purposes only, and should not be construed as legal advice on any subject matter.
Read More
chevron-down linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram