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FSC Securities Corp. On the Hook for $1.28 M Arbitration Award

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FSC Securities Corp. is on the hook for a $1.28 million arbitration award to investors who were swindled by notorious con man Aubrey Lee Price, who faked his death in 2012 to escape an investigation into a $40 million Ponzi scheme.

The eight claimants alleged that FSC, one of the broker-dealers in the AIG Advisor Group, failed to supervise the unnamed brokers in the claim, who sold the claimants “unspecified fraudulent securities as part of a Ponzi scheme,” according to the award, which was issued by a FINRA (Financial Industry Regulatory Authority) the brokerage firm self-regulator. The $1.28 million award was for compensatory damages.

The claimants’ attorney said Mr. Price worked with two other former FSC brokers to get clients to invest in the main vehicle of the Ponzi, a fund called the PFG fund. According to the FBI, Mr. Price began making the risky investments in 2009, after he had left FSC.

Mr. Price was a broker with FSC from 2006 to 2008. Prior to that, he did stints at Banc of America Investment Services Inc. and Citigroup Global Markets Inc. While at FSC, he was based in McDonough, Ga., a suburb of Atlanta. In 2014, a federal judge sentenced Mr. Price to 30 years in prison for bank fraud.

“The fraud in which Mr. Price engaged in is extremely disturbing and FSC Securities shares sympathy for the victims of Aubrey Lee Price,” wrote Tony Vignieri, a spokesman for AIG Advisor Group, in an email to InvestmentNews. “It’s important to point out that Mr. Price left FSC in January 2008 and did not actually commence operation of his hedge fund until one year later. Several of the hedge fund investments at issue in this claim occurred in 2011, more than three years after he Mr. Price’s departure from FSC. FSC Securities had no knowledge of Mr. Price’s activities after he left the firm.”

Two FSC advisers funneled client money to the PFG fund, Mr. Chapman said. Both of them later left the firm. “FSC did a really bad job paying attention and supervision. They were asleep at the wheel,” the Claimant’s attorney said. The firm had “multiple opportunities to find that Price and the two other brokers were all selling away into this fund and claiming preposterous rates of return in 2008. They should have stopped it.”

In 2012, Mr. Price faked his suicide on a boat in Key West, Fla. He eventually returned to Florida, where he sold and grew marijuana and sometimes worked as a bodyguard for prostitutes, according to the FBI. He was arrested on New Year’s Eve in 2013 after a routine traffic stop in Georgia.

If you had an account at FSC, and were drawn in by Aubrey Lee Price, time is running out to obtain compensation for your losses. You should contact StockBrokerLawyer.com without delay to have your own situation reviewed, and to hear how we can help recover your investment losses.

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If you aware of stock broker misconduct that is not being addressed, contact us:

Fogel & Associates
15260 Ventura Blvd.
Suite 2250
Sherman Oaks, CA 91403-5338
By phone: Call us toll-free at 1 (888) 986-9010
By email: Please fill out the form to the right

Contact StockBrokerLawyer now for a free, confidential review of your losses, and if they can be recovered.  The passage of time is always used as a defense, don’t delay, contact us now by calling (888) 986-9010, or emailing on the form provided.  We will respond as soon as possible, and having an independent no-cost review will help answer your questions.  We never share your personal information with third parties.

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