On July 1, 2015, the Securities and Exchange Commission (SEC) issued a litigation release to the public concerning Pennsylvania-based financial advisor Malcolm Segal. Our law firm currently represents former clients of Segal.
The SEC charged Malcolm Segal with numerous violations, including the operation of a Ponzi Scheme and stealing investor money to enrich himself. According to the allegations, Malcolm Segal fraudulently sold Certificates of Deposit (CDs) to his customers, claiming he could obtain higher interests rates than were generally available. It appears that Segal would then secretly redeem the CDs and use the proceeds for himself; in some cases, the CDs may never have been purchased at all.
The SEC has estimated that Malcolm Segal defrauded at least 50 investors of around $15.5 million. Besides enrichening himself with the CDs, Segal also used payments from new investors to pay off earlier investors, in classic Ponzi scheme fashion.
Over the course of his career, Malcolm Segal operated several businesses and D/B/As of his own, selling CDs direct to his customers. However, for a time Segal was also a registered broker at Aegis Capital, some of whose customers also appear to have been injured by Segal’s fraud and theft.
Pennsylvania Securities Litigation Law Firm
Our firm currently represents former customers of Malcolm Segal who lost a significant amount of money in one of his fraudulent or nonexistent CDs. If you or anyone you know may have been damaged by Segal’s schemes, please contact our experienced securities litigation attorneys immediately to protect your legal rights at 1-855-462-3330 or via our online contact form. Please do not wait, as local statutes of limitations for bringing an action may apply.