Disgraced ex-stockbroker Philip Rossi pleaded guilty of fraud in the criminal case filed against him by federal prosecutors in the Northern District of Ohio.  Rossi withdrew his earlier plea of not guilty and entered into a plea agreement with the federal prosecutors on April 16, 2009.  Rossi's sentencing is scheduled for July 13, 2009.  At this time, Rossi continue to be detained, due to his earlier violation of his bond terms.

Rossi was accused of defrauding more than 40 victims, who invested in excess of $2.5 million with him.  He induced his victims to invest by promising above-market returns for their investments.  He assured his victims that their money would be safely invested.  In reality, Rossi was operating a Ponzi scheme.  He failed to return his investors' money when they demanded it, and offered one excuse after another.

The securities law firm of Chapman & Associates filed a lawsuit on behalf of investors victimized by Rossi.  The lawsuit alleges that Rossi's employer, a broker-dealer, failed to reasonably supervise Rossi and allowed him to defraud its customers.  "Time after time, we see broker-dealers hiring unethical stock brokers, allowing them to get licensed and sell securities to the investing pubilc, but then failing to adequately supervise and prevent them from deceiving their customers," said John Chapman, a securities attorney.  "We are going to hold liable those broker-dealers who failed in their duties to protect the investing public," said Chapman.

Chapman & Associates intends to vigorously prosecute Rossi investors' claims.  Chapman & Associates is a securities litigation firm that often handles fraudulent investment claims on behalf of investors in FINRA arbitration.  If you or a family member has been victimized in Philip Rossi's fraud, please contact us toll free at 866-220-3300 or by email at jchapman@jscltd.com.