Goodman & Nekvasil, P.A. May Recover Losses | Hector May, Broker Pleads Guilty to Fraud Charges
Hector May was licensed with Securities America, Inc. from 1998 to 2018. Securities America, Inc. reported to FINRA that Hector May was discharged from Securities America, Inc on March 9, 2018. Securities America, Inc. reports that Hector May allegedly misappropriated client assets.
The SEC filed a complaint on December 13, 2018 against Hector May and Hector May’s daughter, Vania May Bell alleging that they misappropriated at least $7.9 million from at least 15 investment advisory clients by perpetrating a Ponzi scheme. The SEC alleges that Hector May’s victims included people close to Hector May who knew and trusted him through familial ties, friendship, or local community connections. The SEC alleges that Hector May, with Bells assistance, offered to buy bonds for Hector May’s clients, solicited their funds for the investments, and then diverted the money for his own use. The SEC alleges that over the life of the scheme, instead of buying bonds, Hector May used Hector May’s clients’ money to pay for salaries for himself and Bell, business and personal credit card bills, a limousine driver, country club dues, home remodeling, travel, personal loans to friends, political contributions, a vacation home, and furs and jewelry for his wife.
The SEC alleges that in an effort to conceal and further perpetuate the scheme, Hector May and Bell created and sent the clients fabricated account statements reporting fictitious purchases of bonds. The SEC alleges that over time, as the fake bond purchases multiplied, these account statements grossly inflated the victims’ holdings, deceiving them further. For example, the SEC alleges that an account statement for one client couple, dated December 19, 2017, listed a total portfolio value of over $8.6 million even though the couple actually had less than $51,000 in assets.
Manhattan U.S. Attorney Geoffrey S. Berman quoted on December 13, 2018: “As Hector May admitted today, for decades Hector May and Hector May’s co-conspirator violated Hector May’s clients’ trust by siphoning money from their accounts to line their pockets and continue to perpetrate their illegal scheme. In total, Hector May and Hector May’s con-conspirator stole more than $11 million. Now, Hector May has confessed to Hector May’s crimes and faces significant time in prsion.”
FINRA reports that two arbitration claims involving Hector May’s conduct with Securities America, Inc. have been filed, with the claimants alleging that they are victims of fraud and misappropriation by the representative and/or that Hector May misappropriated their assets in a Ponzi-like scheme. These two arbitration claims allege damages of $3,437, 435.30 and $439,000.
If you lost any money on investments with Hector May, you may be able to recover your losses from Securities America, Inc. This is because Securities America, Inc. had a duty to supervise Hector May.
All our cases are handled on a purely contingency fee basis by Kalju Nekvasil, Esq., formerly regional counsel with the NASD, now known as FINRA. Kalju Nekvasil, Esq. has practiced in this area of the law for more than 35 years.
There is no charge for an evaluation of your case. Further, we handle our cases on a contingency fee basis. This means that unless we recover money for you, we charge no attorney’s fee. Unless you recover any money, you pay us nothing, not even the costs and expenses which the firm will advance on your behalf.
If you incurred losses on your investment with Hector May and would like your case evaluated by a securities attorney (again, there is no charge for an evaluation and all cases are handled on a purely contingency fee basis), please contact us.