INVESTORS: The SEC charged former Illinois investment professional Ronald T. Molo with defrauding three investors out of approximately $800,000.
On November 23, 2021, the SEC charged a former Illinois investment professional with fraud stemming from allegations that he defrauded three investors out of approximately $800,000 and used the funds to pay his own personal expenses.
The SEC’s complaint alleges that between January 2019 and November 2021, Ronald T. Molo stole a total of approximately $800,000 from three investors, two of whom were his investment advisory clients and one of whom was his brokerage customer.
The SEC alleges that Molo convinced the three investors to transfer money out of their advisory and brokerage accounts to another bank account, purportedly to invest in tax-free bonds. In reality, the bonds did not exist, and Molo did not tell the investors that the account to which he had directed them to transfer their money was his personal bank account. Instead of investing the money, Molo used it to pay personal expenses, including mortgage payments, automobile purchases, and renovations to his home. The complaint alleges that Molo tried to cover up his fraud by sending the three investors purported interest payments from the nonexistent bonds, using altered cashier’s checks drawn from funds in his personal bank account.
The SEC charged Molo with violating Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections 206(1) and 206(2) of the Investment Advisers Act of 1940, and seeks injunctive relief, disgorgement, prejudgment interest, and civil penalties. The U.S. Attorney’s Office for the Northern District of Illinois filed criminal charges against Molo on November 23, 2021 in a parallel action.
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The Sonn Law Group is currently investigating allegations surrounding Ronald T. Molo. We represent investors in claims against negligent brokers and brokerage firms. If you or your loved one experienced investment losses, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form.