SEC Obtains Judgment Against Former Adviser Charged with Defrauding Retirees
A federal district court in Massachusetts entered a final judgment against Richard Cody, a former investment adviser and broker representative who defrauded Massachusetts retirees.
A federal district court in Massachusetts entered a final judgment against Richard Cody, a former investment adviser and broker representative who defrauded Massachusetts retirees.
According to the SEC’s complaint, Cody defrauded at least three of his retired clients over a 12-year period by concealing extensive losses in their retirement accounts, which were being rapidly depleted. He purportedly concealed these losses by leading the clients to believe that their investments were maintaining steady value and that they were living off income from the investments by making monthly wire transfers to their bank accounts and sending fabricated tax forms.
Cody plead guilty to criminal charges brought by the U.S. Attorney for the District of Massachusetts, in a case arising from the same conduct alleged in the SEC’s complaint. He was sentenced to two years of imprisonment in March 2019.
The court, which previously ordered a preliminary injunction and an asset freeze against Cody and his company Boston Investment Partners LLC, granted the SEC’s motion for summary judgment and found that Cody violated the antifraud provisions of various federal securities laws.
The court ordered Cody to pay disgorgement of $14,171 plus pre-judgment interest of $3,490, and the SEC moved to dismiss relief defendant Boston Investment Partners from the action on February 14, 2020.
Prior to his bar by the SEC and FINRA, he had 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).
