The final judgment delivered by the Securities Exchange Commission (SEC) has ordered ex-advisor Chad Burroughs to pay $560,000 in disgorgement to elderly victims of his financial fraud. This is a little lower than the $575,000 restitution asked for in the criminal case.
In April 2020, Burroughs was awarded a jail sentence of 33 months to be followed by a supervised release for the next 3 years.
The Case Against Chad Burroughs
The claim of $575,000 stems from Burroughs apparently convincing three advisory clients to invest $560,000 in Guaranteed Investment Contracts (GICs) that would generate a guaranteed return of 4 or 7% per annum. However, the money appears to have never reached the GICs. Burroughs even started generating and providing fake account statements to the clients to make them believe that their investment was alive and working for them.
Approximately $445,000 out of the total amount appears to have been used to repay an original client, reflecting the principal plus interest at 4% per annum.
About Chad Burroughs
Burroughs is an industry veteran of 33 years. According to his BrokerCheck report, he has 20 instances of complaints filed by customers on his record, with the main allegations being misrepresentation and improper sales practices. According to the report, his last association appears to be with Lincoln Investments in Torrington, CT, from 2012 onwards till December 2019, from where he was released during the pendency of the suit.
Investors who have lost money or suspect having been defrauded in their investment activities have recourses available to them, whether it is while investing with Lester “Chad” Burroughs or anyone else.
Even the brokerage firm that an advisor is registered with has responsibilities and could be fully liable for your losses. They are required to adequately monitor and supervise the activities of their representatives.
To know the remedies available, you can reach out to the investment fraud attorneys at 1-800-856-3352, for a free consultation.
Haselkorn & Thibaut is investigating cases where the former employers of Burroughs could be liable. We are a national investment fraud, securities arbitration, and investor protection law firm with locations nationwide.