Federal Jury Returns Verdict in Financial Advisor Fraud Case

BENJAMIN L. GRANT, financial advisor, and his firm Sage Advisory Group based in Boston, were found liable for fraud by a federal jury in Massachusetts. This case was originally filed in 2010 by the Securities and Exchange Commission (SEC).

According to the SEC's complaint, allegedly Benjamin Lee Grant of Boston persuaded his former brokerage customers from Wedbush Morgan Securities to transfer their assets to his new advisory firm, Sage Advisory Group. Apparently, Grant had accounts totaling over $100 million with Wedbush Morgan. Nearly all of these assets were managed by First Wilshire Securities Management, of California.

In September, 2005, the SEC said that Grant left Wedbush Morgan and opened Sage Advisory. Allegedly he told his clients in a letter that First Wilshire Securities Management suggested moving their accounts from Wedbush Morgan to a discount broker and Grant said that Sage Advisory Group was formed to handle the investments. He then told his clients, according to the SEC, to sign the documents to avoid disruption of their assets. The SEC felt Grant's statements to his clients were false and misleading.

The jury deliberated for two hours and returned a verdict siding with the SEC.

BENJAMIN L. GRANT (CRD# 2671941), according to FINRA's BrokerCheck, was previously registered with the following securities firm(s):

WEDBUSH MORGAN SECURITIES INC. (CRD# 877) - LOS ANGELES, CA
12/2001 - 10/2005

FIRST WILSHIRE SECURITIES MANAGEMENT, INC. (CRD# 6609) - PASADENA, CA
03/1998 - 12/2001

INTERSECURITIES, INC. (CRD# 16164) - ST. PETERSBURG, FL
09/1996 - 02/1998

CITICORP SECURITIES, INC. (CRD# 7474) - NEW YORK, NY
11/1995 - 08/1996

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