Boston Area Broker Pleads Guilty to Wire Fraud and Identity Theft after Bilking Elderly Clients out of their Retirement Funds

Soreide Law Group is currently investigating possible claims against JOHN M. BABIARZ (CRD# 3047247), a 40 year-old investment advisor from Peabody, MA, formerly employed with Bishop, Rosen & Co. of Newton, MA.

Babiarz has pleaded guilty in US District Court to wire fraud and aggravated identity theft. He allegedly defrauded several clients out of their retirement savings. Babiarz then used his clients' money to buy a new house and car. He will be sentenced on August 1, 2014.

According to the investigation, allegedly after John Babiarz was fired from Bishop, Rosen & Co. of Newton, MA, in September of 2011, he falsely told some of his former clients that he had taken a job at Fidelity Investments, and told some of his other clients he was working independently.

Babiarz then falsely told clients he could continue managing their money online with Fidelity, even though he was not employed as a broker with Fidelity. Babiarz opened online accounts for his former clients and set up their usernames and passwords. He then allegedly diverted clients' money to the accounts which he controlled.

According to FINRA's BrokerCheck, JOHN M. BABIARZ was previously registered with the following FINRA firm(s):

BISHOP, ROSEN & CO., INC. (CRD# 1248) - NEWTON, MA
11/2009 - 09/2011

CAPITOL SECURITIES MANAGEMENT, INC. (CRD# 14169) - WORCESTER, MA
06/2009 - 07/2009

JESUP & LAMONT SECURITIES CORP (CRD# 39056) - WORCESTER, MA
FINRA expelled the firm in 11/2010 11/2004 - 06/2009

PRIMEVEST FINANCIAL SERVICES, INC. (CRD# 15340) - ST. CLOUD, MN
05/2002 - 11/2004

LINSCO/PRIVATE LEDGER CORP. (CRD# 6413) - BOSTON, MA
05/2001 - 05/2002

INVESTORS CAPITAL CORP. (CRD# 30613) - LYNNFIELD, MA
04/1999 - 05/2001

DEAN WITTER REYNOLDS INC. (CRD# 7556) - PURCHASE, NY
01/1999 - 04/1999

BEAR, STEARNS & CO. INC. (CRD# 79) - NEW YORK, NY
06/1998 - 01/1999

If you or an elderly family member have suffered financial losses due to John M. Babiarz or your broker/financial advisor, call Soreide Law Group for a free consultation on how to potentially recover those losses at 888-760-6552. We represent our clients nationwide before FINRA.