Securities Lawyers Blog
The law offices of Gana Weinstein LLP are currently investigating claims that Broker Richard Crabtree (Crabtree) has been accused by investors of engaging in fraudulent misappropriation of their funds. According to records kept by The Financial Industry Regulatory Authority (FINRA), it appears that Crabtree was employed by Merrill Lynch, Pierce, Fenner & Smith Incorporated at the time of the activity. If you have been a victim of Crabtree’s alleged misconduct our firm may be able to assist you in recovering funds.
FINRA BrokerCheck shows a final customer complaint on September 23, 2022.
The Securities and Exchange Commission (‘Commission’) deems it appropriate and in the public interest that public administrative and cease-and-desist proceedings be, and hereby are, instituted pursuant to Section 8A of the Securities Act of 1933 (‘Securities Act’), Sections 15(b)(6) and 21C of the Securities Exchange Act of 1934 (‘Exchange Act’), Sections 203(f) and 203(k) of the Investment Advisers Act of 1940 (‘Advisers Act’), and Section 9(b) of the Investment Company Act of 1940 (‘Investment Company Act’) against Richard M. Crabtree (‘Respondent’ or ‘Crabtree’). The Commission finds that Crabtree, defrauded his advisory client about the investments in the client’s accounts, their performance, and the value of the client’s assets. Crabtree, who was a Senior Vice President at a prominent investment adviser and resident director of the Annapolis, Maryland branch office of the investment adviser, deceived the client into believing that he had invested $250,000 of the client’s funds into a private investment partnership that was held outside of the Investment Adviser. Crabtree falsely represented to the client that the trading strategy was highly profitable and that the client’s interest in the private investment partnership grew to as high as approximately $10 million. However, Crabtree never invested any of the client’s funds into a private investment partnership, and none of its profits were real. To perpetuate and conceal this fraud, Crabtree repeatedly falsified records, including portfolio review reports, trading records, data in the investment adviser’s system, and mortgage payout letters, and liquidated securities in one of the client’s advisory accounts. As a result of his conduct, Crabtree willfully violated Sections 17(a)(1) and 17(a)(3) of the Securities Act, Section 10(b) of the Exchange Act and Rule 10b-5 thereunder and Sections 206(1) and 206(2) of the Advisers Act.