The law firm of Oakes & Fosher is presently investigating the alleged misconduct of former securities broker Hector May. According to his publicly available FINRA BrokerCheck report, Hector May has been the subject of multiple customer complaints and sanctions
Hector May was a New York based securities broker. He worked in the securities industry for forty-four years. During his career, he was registered with four different securities firms. He is no longer working as a registered securities broker in any fashion.
- The Equitable Life Assurance Society (1973-1992)
- Equico Securities (1980-1992)
- Prime Capital Services (1992-1994)
- Securities America (1994-2018)
According to findings released by the United States Securities and Exchange Commission, Hector May misappropriated approximately $8 million from at least fifteen of his advisory clients. He did this by soliciting funds from investors while stating he would use the money to purchase bonds. However, Hector May allegedly diverted the funds and converted them for his own personal expenses. Some of these expenses included salaries for him and his daughter, credit card bills, a limousine driver, country club dues, home remodeling, travel expenses, personal loans to friends, political contributions, furs and jewelry for his wife, and a vacation home. Hector May ran this operation as a traditional Ponzi scheme.
What is a Ponzi Scheme?
A Ponzi scheme is a fraudulent investment scheme that takes place when an individual, or group of individuals, solicit funds from investors under the guise of a legitimate investment. Instead of investing the funds as promised, the perpetrating party diverts the funds for other purposes. The perpetrating party then provides the investors with falsified information showing investment growth. However, since no actual growth is taking place, the only way to pay investor dividends, or to buy out investors when they request it, is by using money solicited from later rounds of investors. This process continues until the entire operation collapses–as it did for Hector May.
Like the perpetrating party does in a Ponzi scheme, Hector May provided misleading financial information to the investors that stated the value of the assets had grown by $700,000, when, in reality, they were valued at less than $51,000. Hector May was discharged from his position at Securities America in March 2018 due to the allegations; however, multiple customers have filed claims against Securities America for not preventing these alleged actions. In June 2018, one case was settled for just shy of $4 million. In September 2018, a case was settled for $406,510. One case filed in February 2019 is still pending; however, the customers are seeking $18 million in damages.
Hector May was barred by the United States Securities and Exchange Commission from acting as a securities broker in any fashion in February 2019. He pled guilty to one count of “Conspiracy to Commit Wire Fraud” and one count of “Investment Adviser Fraud.”
Oakes & Fosher Can Help
Many investors are unaware of the legal recourse available to them after losing money due to securities broker fraud and/or negligence. The truth is that investors who have lost money in this fashion may actually be entitled to damages.
Oakes & Fosher dedicates its entire legal practice to helping investors across the nation. If you, or someone you know, have lost money investing with Hector May, please contact Oakes & Fosher for a free and private consultation. Oakes & Fosher handles cases on a contingency basis, which means there are no fees charged unless we collect for you.