SEC v. German Nino

https://www.sec.gov/news/press-release/2022-8

https://www.sec.gov/litigation/complaints/2022/comp-pr2022-8.pdf

Do you feel safe with the financial investments you execute through large brokerage houses or financial advisors? Well, maybe you are, but maybe you aren’t. Most of the time when we see an SEC complaint against an individual registered agent, the name of the company and the individual worked for or was associated with is withheld.

Maybe if the company cooperates with the SEC, they are afforded the benefit of keeping their name out of the papers and the courthouse. Not every company gets its name withheld, as was recently the case with UBS Financial Services. UBS is not charged as far as we can tell, but one of their registered representatives from Weston Florida is being sued by the SEC for investment fraud.

Investment Fraud Almost In Plain Sight

German Nino, a 56- year-old resident of Weston, Florida, caught the SEC’s attention recently. From 2014 to 2020, Nino allegedly stole $5.8 million from one client. In Nino’s case, he wasn’t involved in oil and gas deals, real estate investments or digital currency. He was a traditional agent with UBS, stealing from brokerage accounts.

One wealthy couple had an $11 million portfolio under Nino’s management. Nino was able to steal half the couple’s money by making unauthorized wire transfers from their accounts, near the time he would liquidate securities. “Nino ultimately deposited those funds into a bank account that Nino kept separately from his marital accounts.” SEC Complaint

What Motivates The White Collar Criminal?

In the case of German Nino, he seems to be motivated, at least in part, by the affections of the opposite sex.  He spent $4.6 million on “several women with whom he had romantic relationships. His purchases ranged from small gifts and vacations to luxury cars, private school tuition, and an apartment in Colombia.” SEC Complaint

German Nino’s story, isn’t sexy, and his motivation isn’t new, but in addition to the $4.6 million he spent on his lady friends, he used $1.2 million of stolen money to repay another client in his financial investment advisory business.

Lying To Clients

How in the world did Nino manage to conceal his fraud for multiple years? Of course, he lied. He lied in face-to-face meetings. He falsified documents. Not only did he fail to report the unauthorized transfers, but he also “misrepresented the performance, account balances, and rates of return for the affected accounts.”  SEC Complaint

Nino even forged his clients’ signatures on documents he submitted to UBS. He changed UBS documents to make sure his clients did not receive email notifications of wire transfers. And, he prepared account statements that inflated the balances of the accounts.

How did Nino get caught? The client’s son started reviewing accounts and noticed some discrepancies. When he questioned Nino about the account balance discrepancy, Nino eventually confessed and promised to pay back the money. The client, however, alerted UBS. During the UBS investigation of Nino, Nino resigned when asked to submit to an interview. SEC Complaint

Investors, Beware!

Conservative investors may shy away from cryptocurrency, oil and gas investments and real estate transactions. However, a good deal of investment fraud happens with traditional investments, even at brokerage houses.

Had the financial investor Nino repaid the $1.2 million reported by Nino to the SEC, perhaps the second client would not have lost as much of their financial investment.

What Can You Do To Decrease Your Risk?

  • Review all statements immediately and thoroughly. Make sure your statements come directly from the brokerage house.
  • Review all transactions.
  • Report any possible irregularities to the brokerage house, and not to your broker.
  • Make the money transfers yourself.
  • Control your online reporting. Don’t give access to your online account to your advisor.

When exploring financial investment opportunities in securities, oil and gas, real estate, or cryptocurrency, do your research. Check the history of the people in the deal, as well as any past or pending lawsuits. Read all documents before signing. Don’t get too comfortable with your investment advisor. Take steps to verify all data.

We hope all your real estate, cryptocurrency and oil & gas investments are safe and profitable. But if you find yourself searching for an experienced investment fraud attorney, oil and gas litigation lawyer, or commercial litigation lawyer, we are here to help.