Home Alts News SEC Charges Former Longtime Broker with Stealing Nearly $1 Million from Clients

SEC Charges Former Longtime Broker with Stealing Nearly $1 Million from Clients

The Securities and Exchange Commission has charged Ronald T. Molo, a former investment adviser and broker at Edward Jones, with allegedly defrauding three investors out of approximately $800,000 between January 2019 and November 2020.

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The Securities and Exchange Commission has charged Ronald T. Molo, a former investment adviser and broker at Edward Jones, with allegedly defrauding three investors out of approximately $800,000 between January 2019 and November 2020.

According to the complaint, 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. The SEC claims that the bonds did not exist, and Molo did not tell the investors that the account to which he had directed them to transfer the money was his personal bank account.

Molo reportedly used the funds to pay personal expenses, including mortgage payments, automobile purchases, and renovations to his home.

The SEC also alleges that he tried to cover up his fraud by sending the three investors “interest payments” from the nonexistent bonds, using altered cashier’s checks drawn from funds in his personal bank account.

According to his BrokerCheck profile, Molo spent 20 years at Edward Jones before he was fired in June for allegations similar to those found in the SEC’s complaint. He was suspended by FINRA in late October for failing to respond to their requests for information.

The SEC’s complaint, filed in the U.S. District Court for the Northern District of Illinois, charges Molo with violating various federal securities laws 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 in a parallel action.

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