Securities Law Prof Blog

Editor: Eric C. Chaffee
Univ. of Toledo College of Law

Wednesday, September 2, 2009

FINRA Bars Two Brokers in Separate Ponzi Schemes

FINRA announced that in separate enforcement actions, it has permanently barred two brokers for running multi-million-dollar Ponzi schemes that victimized a wide range of investors — including elderly individuals, mentally and physically impaired individuals, church members and even family friends.  

FINRA barred Oren Eugene Sullivan, Jr., of Rock Hill, SC, for misappropriating approximately $3.7 million in a decades-long Ponzi scheme involving more than 30 clients — including 15 widows, two Alzheimer's victims and an individual with developmental impairments. At least eight of the affected clients were over 80 years old and another four were over 70 years of age. Numerous victims considered Sullivan a close family friend.  Sullivan was a registered representative of NYLife Securities.

FINRA also barred William Walter Spencer, Sr., of Franklin, TN, who "borrowed" nearly $2 million from elderly members of his church and from customers of his employing broker-dealer, Wiley Bros. — Aintree Capital, LLC.

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