Corporate & Securities Law

Martin Wegener Fraud Investigation

By Steven Caruso

Grand Rapids, stockbroker Martin Wegener, New England Securities, is the subject of a civil injunction action filed June 14 by the Securities and Exchange Commission (SEC). According to the complaint, Wegener defrauded investors of at least $6.4 million from March 2007 to March 2010.

Wegener?s office in Walker, Michigan, has been closed since April following a raid by law enforcement officials. So far, at least two of Wegener?s former clients are suing New England Securities, the company Wegener represented.

In its 13-page civil complaint, the SEC contends Wegener ran his alleged scheme by investing clients? money in a variety of bogus securities, as well as in two companies of which he had ownership, Wealth Resources, Inc. and Wealth Resources, LLC.

In reality, however, Wegener was keeping investors? money for himself, while sending out fake brokerage statements to clients.

The SEC also accuses Wegener of using investors? money to make Ponzi-like payments to other customers who requested a return of all or a portion of their investment.

Maddox Hargett & Caruso P.C. currently is investigating both Martin Wegener and New England Securities on behalf of investors who sustained investment losses. If you have a story to tell related to this matter, contact our securities fraud team. We can evaluate your situation to determine if you have a claim.

Full post as published by Representing Investors on July 13, 2010 (boomark / email).