Former LPL Broker Ordered to Pay $1.8 Million to Defrauded Customers

by Wall Street Fraud on March 29, 2012

Investment fraud attorneyA former LPL Financial LLC broker has been sentenced to more than three years in prison and ordered to pay $1.8 million in client restitution. Elliot Kravitz pleaded guilty to wire fraud last May after it was discovered that he had taken funds out of clients' brokerage accounts and deposited them into an account he controlled.

As detailed by the FBI, the broker’s securities fraud began when he advised a client to buy a real estate investment trust. However, instead of investing it in the real estate investment trust, Kravitz put the money into an account he controlled. “Mr. Kravitz made 12 additional withdrawals totaling $713,765.17 from the client's account by changing the dates on the original distribution form and faxing the requests to the company holding the account,” according to the FBI statement.

“Kravitz similarly diverted $1,127,603 from eight other clients for his personal use,” according to the statement.

Mr. Kravitz's “criminal conduct was knowing and manipulative, particularly because his victims were longtime customers who completely trusted him with their finances,” Assistant U.S. Attorney Jennifer Barry said in a sentencing memorandum filed with the court. “Kravitz took advantage of these relationships and abused a position of trust.”

If you have been the victim of securities fraud or negligence, we may be able to help you recover your losses. Contact us today at 215-839-3953 for a free consultation.

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If you have been the victim of stock brokerage fraud, securities fraud, mutual fund fraud, stockbroker fraud, annuities fraud, or any other type of investment fraud or negligence, please contact our securities fraud attorneys today for a free case evaluation. Our talented and aggressive legal and professional staff is eager to help you recover your losses.

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