Grand Rapids Stockbroker Martin Wegener Accused of Fraud
Grand Rapids, Michigan stockbroker Martin T. Wegener has been accused of fraud by the Securities and Exchange Commission ("SEC"). In its request for emergency relief to the federal court, the Commission charged Wegener with perpetrating a fraudulent investment scheme that raised more than $6.5 million from investors.
Investigation by the securities litigation law firm of Chapman & Associates determined that Wegener used two companies he had formed, owned, and controlled, to perpetrate his scheme: Wealth Resources, Inc. and Wealth Resources, LLC.
Chapman & Associates determined that, between 2007 and 2010, Wegener told his customers he would invest their money profitably through his company, Wealth Resources. Once his clients entrusted him with their money, Wegener sent them purported "brokerage account" statements that showed their funds were invested in publicly traded securities, publicly traded mutual funds, other private companies.
In reality, Wegener did not use the customers' money to purchase the investments as represented, the SEC alleged. Instead, Wegener used his investors' money to finance his lavish lifestyle and make payments to earlier investors.
"Wagener took money from his clients through assurances he would invest them safely, but used them to repay earlier clients, the typical sign of a Ponzi scheme," said John Chapman, a securities attorney.
Chapman & Associates determined that, during the time he perpetrated his scheme, Wegener was affiliated with a prestigiuos securities broker-dealer firm. "Broker-dealer firms who authorize stockbrokers to sell securities on their behalf owe a duty to the investing public to supervise their brokers and prevent them from defrauding the public," said John Chapman. "We will hold liable those who were asleep at the wheel while their employee was fraudulently raising millions of dollars from the pubilc, in violation of the securities laws and regulations," said Chapman.
The securities law firm of Chapman & Associates is preparing to take action against Wegener's employer on behalf of Wegener's investors. Investors who lost money in Martin Wegener's scheme are encouraged to contact a securities attorney and discuss their recovery options.