Pennsylvania Investment Adviser Indicted For Securities Fraud And Mail Fraud
Pennsylvania Investment Adviser Bernard Parker has been charged with one count of securities fraud and one count of mail fraud by a federal grand jury in Pittsburgh.
According to the indictment, the Pennsylvania Investment Adviser was the principal in Parker Financial Services. Parker solicited investments from 22 different investors and clients to purchase tax lien certificates. However, Parker never filed the investments with the Securities and Exchange Commission.
Furthermore, Parker allegedly told investors they could expect returns of 6% to 9% on the money they invested with Parker Financial.
Parker used the funds for nearly $1.2 million in personal expenses. He never used the money to purchase tax lien certificates from 2008 through 2014.
Investor A purportedly paid $5,000 to Parker on Nov. 15, 2014, for what the investor believed to be a tax lien certificate. Parker used the money for his personal expenses.
SEC also claims that Parker withdrew more than $650,000 in investor funds in cash. Parker withdrew the money from teller transactions and ATMs at local supermarkets. He spent also approximately $197,000 of investor money in point-of-sale transactions.
Parker also wrote $150,000 in personal checks and spent $169,000 for online bill payments.
Parker is facing a maximum sentence of 30 years in prison and a fine of $1,250,000 or both.