Malecki Law Featured in Financial Planning Article for Insights on Alleged Hector May Ponzi Scheme, Eye Towards Educating Victims

Malecki Law was featured in the news for filing a FINRA arbitration claim on behalf of investors alleging that Securities America failed to perform proper supervisory duties as their formerly registered broker, Hector May allegedly operated a Ponzi Scheme. In the Financial Planning article, investor fraud attorney Jenice Malecki provides additional information and commentary on her representation of nine clients against Securities America. Financial Planning provides breaking and daily news coverage as well as analysis to help independent financial advisors better their business, practice and client services. Readership often includes independent broker-dealers, financial planners and other industry professionals seeking insights into the highly regulated securities industry. Malecki Law spoke with Financial Planning to spread the message so that other innocent victims who lost their hard-earned savings may seek justice.

Investor fraud attorney, Jenice Malecki released more details regarding the specific allegations relating to Hector May’s allegedly fraudulent practices against investing clients to Financial Planning in hopes of raising awareness. Allegedly, victims of the New City broker’s Ponzi scheme were under the impression that Hector May invested their money into “tax-free” bond products from firms like General Electric. The clients later learned alleged Ponzi Schemer’s “tax-free” bond products were non-existent and apparently just words on false account statements.  When asked for a comment, Hector May’s attorney declined to provide a comment regarding a case started by a law firm placing ads in the newspaper for clients.

The clients are filing the claim only against Securities America since Hector May already had assets frozen and could not pay the award, Jenice Malecki commented.  FINRA rules place broker-dealers at fault for investment losses resulting from their failure to properly supervise and detect a Ponzi Scheme committed by their registered representative. Securities America had an obligation to monitor Hector May’s activities, including the fraud that transpired. Clients are claiming that Securities America missed many “red flags” that would have clued off a Ponzi Scheme.

It is a mystery how Hector May appeared to have committed these fraudulent practices while working under Securities America for some time. Astoundingly, Jenice Malecki learned that Hector May’s brokerage firm employer, Securities America may have been informed of his misconduct months before his termination. Investor fraud attorney Jenice Malecki told Financial Planning that Securities America could have had a swifter reaction to Hector May’s purported activities.  Securities America terminated Hector May’s employment on grounds of “misappropriating funds” only after the Department of Justice investigation started according to his CRD/Broker Check records. Our securities fraud attorneys have questioned if Securities America would have taken any action to stop Hector May in the absence of the DOJ’s official criminal investigation of Hector May for a suspected felony.

Malecki Law has substantial experience with recovering investment losses in FINRA arbitration due to brokerage firm supervisory failures. The FINRA arbitration process is an alternative dispute resolution forum that allows for investors to file a claim at lower expense with a faster resolution than regular court litigation. The majority of investor customer disputes are handled through FINRA arbitration given that agreements often contain mandating clauses. Three neutral arbitrators, instead of a court judge and jury, determine the merits of a claim for investment losses in FINRA arbitration.

Malecki Law is committed to providing education and assisting investors who have been taken advantage of by unscrupulous registered representatives along with negligent supervising brokerage firms. Notably, retirees who lost their life savings from Hector May’s allegedly fraudulent actions may be left with no other choice but to regain employment, as evident in many Ponzi Schemes. Malecki Law’s investment fraud attorneys have spoken on panels and visited senior centers to educate members about elder financial exploitation. On behalf of investor fraud victims, our top securities lawyers zealously pursue claims for the return of their investment losses. Malecki Law has been featured in other articles reporting on their representation of a group of investors claiming investment losses from Ponzi schemes and other fraudulent activity.

Former clients of Hector May, Executive Compensation Planners and Securities America are advised to immediately perform a thorough check of their brokerage accounts for any losses. Securities fraud attorneys believe that Hector May’s alleged Ponzi Scheme defrauded even more investors who have yet to come forward with claims. Other investor victims who lost money from Hector May’s alleged fraudulent activity under Securities America’s “supervision” can join our current arbitration claim. Contact our investor fraud law firm for more information as well as assistance with recovering lost money from financial fraud.

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