|
After eight complaints, and two regulatory proceedings, the Securities and Exchange Commission finally takes action and settles claims against stockbroker for defrauding disabled group of elderly nuns.
Paul G. Chironis, a stockbroker with Capital Growth Financial, Inc., with a significant history of customer initiated, investment related complaints, agreed to settle charges and agreed to the entry of certain findings of fact, that he churned the securities accounts belonging to a group of nuns, the Sisters of Charity, some of whom lived in an assisted living center.
According to the SEC, Chironis sold the nun’s mortgage-backed securities, including securities guaranteed by the Federal Home Loan Mortgage Corporation (Freddie Mac), the Federal National Mortgage Association (Fannie Mae), and the Government National Mortgage Association (Ginnie Mae), and from January 1, 2007 through January 31, 2008, made almost a million dollars ($959,027) churning the nun’s accounts in questionable bonds, with undisclosed mark-ups and mark-downs.
During this same period, the nuns would have had to make 11.3% of their value of their investments simply to break even, after Chironis’ undisclosed fees and commissions.
Chironis agreed to pay $350,000 to the Sisters of Charity in the SEC settlement.
Without admitting or denying any of the allegations in the civil injunctive action against him, Chironis agreed to an order barring him from association with any broker, dealer, investment adviser, municipal securities dealer, transfer agent, municipal advisor, or nationally recognized statistical ratings organization. The order also prohibits him from serving or acting as an employee, officer, director, member of an advisory board, investment adviser or depositor of, or principal underwriter for, a registered investment company or affiliated person of such investment adviser, depositor, or principal underwriter.
Additionally, Chironis agreed to pay a $100,000 penalty and $250,000 in disgorgement that will be placed in a Fair Fund and distributed to the Sisters of Charity.
Nicholas J. Guiliano, Esquire, The Guiliano Law Firm, P.C., 230 South Broad Street, Suite 601, Philadelphia, PA 19102 (215) 413-8223 (Telephone) (215) 413-8225 (Telecopier) (877) SEC-ATTY. www.securitiesarbitrations.com
|
