Former Broker Pleads Guilty to Fraud and Lying to the SEC
Richard Cody, a former investment adviser and broker who was previously charged by the Securities and Exchange Commission with defrauding Massachusetts retirees, pled guilty to criminal charges filed by the U.S. Attorney for the District of Massachusetts.
Richard Cody, a former investment adviser and broker who was previously charged by the Securities and Exchange Commission with defrauding Massachusetts retirees, pled guilty to criminal charges filed by the U.S. Attorney for the District of Massachusetts.
The SEC filed charges against Cody in December 2016, claiming that he defrauded at least three of his retired clients over a 12-year period by concealing the fact that their retirement accounts had lost substantial value and were being rapidly depleted.
Cody allegedly hid the fact that the retirees’ accounts had run out of funds by making monthly wire transfers to their bank accounts and sending the clients fabricated tax forms.
The criminal charges in the indictment, which was filed on September 26, 2017, arose from the same conduct alleged in the SEC’s complaint. The indictment also alleged that he lied to the SEC during a March 2017 sworn deposition.
The SEC was previously granted preliminary relief against Cody and his company, Boston Investment Partners, including an asset freeze.
Cody has been registered at IFS Securities (2016), Concorde Investment Services (2014-2016), Westminster Financial Securities (2010-2013), Gunnallen Financial (2005-2010), and Leerink Swann & Company (2001-2005).
The SEC’s litigation against Cody, which seeks disgorgement of allegedly ill-gotten gains plus interest and penalties, as well as permanent injunctive relief, is ongoing.
Cody pled guilty and is scheduled to be sentenced on February 4, 2019.
