SEC Bars Securities America’s Hector May

Soreide Law Group is evaluating possible claims against Securities America, Inc. general securities representative and Executive Compensation Planners Inc. President, Hector May (CRD#: 323779, New City, NY). Evidently, in December 2018, May pleaded guilty to 1 count of investment adviser fraud and 1 count of conspiracy to commit wire fraud. The Securities Exchange Commission (“SEC”) announced February 14, 2019 that it barred May, 77, from being a broker or adviser. The securities broker, who Securities America discharged for misappropriation of client funds, is also the subject of 3 investor claims – 1 in which investors alleged $18,000,000 in damages.

SEC Bars Hector May After He Pleads Guilty To Fraud

SEC issued an Administrative Order on February 14, 2019 barring Hector May from, inter alia, acting as a securities broker or investment adviser. The Order identifies several factors relevant to the Commission’s Order. First of all, in United States v. Hector May (Crim. Information No. 7:18-CR-00880-VB), May pleaded guilty to 1 count of conspiracy to commit wire fraud and 1 count of investment adviser fraud.

Secondly, SEC filed a Complaint against Hector May in December 2018. The Commission alleged that May executed a Ponzi scheme where he misappropriated $7,900,000 from his advisory clients. Supposedly, May induced advisory clients to provide him money so he could buy bonds for them. Evidently, May diverted clients’ funds slated for bond purchases. He used their money for himself instead of buying bonds pursuant to his representations. The Commission also alleged that May created fake account statements to make it look like he purchased bonds for the clients’ accounts. SEC says May then used some of his clients’ money to pay other clients who requested withdrawals.

Thirdly, Hector May was enjoined in December 2018 from violating federal securities laws including Section 10(b) of the Exchange Act, Section 17(a) of the Securities Act, and Section 206 of the Advisers Act pursuant to a final judgment entered with May’s consent.

2019 Lawsuit Indicates May Misappropriated Clients’ Funds

Evidently, investors filed a lawsuit (Case #: 19-CV-1817) against Hector May on February 28, 2019 regarding sales practice violations from 2001 to 2018 when May worked for Securities America. Mainly, the plaintiffs alleged that May misappropriated or otherwise converted their funds. Allegedly, May breached a fiduciary responsibility to the plaintiffs, placing his interest before theirs. The plaintiffs  alleged $18,000,000 in damages in connection with the allegedly sham real estate securities or municipal debt transactions. This matter is currently unresolved.

Securities America Investors File Arbitration Suggesting Hector May Breached Fiduciary Duty

Evidently, Securities America clients brought FINRA Arbitration #: 18-03163 on September 13, 2018. Mainly, clients claimed that Hector May failed to comply with his fiduciary responsibilities and he breached clients’ investment agreements. Allegedly, May misappropriated those clients’ funds through illegitimate corporate debt transactions. For this reason, Securities America opted to pay those clients $406,510 to settle the matter December 14, 2018.

FINRA Arbitration Suggests Securities America Clients Became Victims To Ponzi-Style Scheme

A third claim comes from Securities America clients who filed FINRA Arbitration #: 18-02230 on June 25, 2018 about Hector May. Mainly, the clients claimed to be victims of a Ponzi Scheme where their funds were misappropriated. Allegedly, the misappropriation occurred in connection with certain corporate debt transactions. On December 17, 2018, Securities America compensated those clients to the tune of $3,950,908 in order to settle the matter.

Lars Soreide Highest Ethical Standard Award 2018

Lars Soreide Highest Ethical Standard Award 2018

Have you experienced losses by investing with general securities representative Hector May? If so, contact Soreide Law Group at (888) 760-6552 and speak with experienced counsel about a possible recovery of your investment losses. Soreide Law Group represents clients on a contingency fee basis and advances all costs. The law firm has recovered millions of dollars for clients who have suffered losses due to misconduct of brokers and brokerage firms.