The Investor’s Watchdog

The Investor's Watchdog

James Booth Ponzi Scheme Recovery

Tuesday, October 22, 2019

James Booth of Connecticut is being accused of running a multi-million dollar Ponzi scheme that took advantage of many investors, including senior citizens. Booth was operating his own financial advisory firm called Booth Financial. For nearly six years, from 2013 to 2019, Booth solicited funds from his investors to the securities held outside of their advisory accounts.

Booth instructed his clients to write checks or wire money to “Insurance Trends, Inc.”, when this was really just the name of a bank account that he had control of. Booth promised that his investment would guarantee higher returns and would be safer for his clients. The funds were actually misappropriated to pay for his personal and business expenses. Booth worked with LPL Financial as his broker-dealer, and all of his former client were notified of his termination and were then authorized to withdraw their money from “Insurance Trends, Inc.”

To prevent clients from seeking returns, Booth created false account statements that showed his false account generating healthy profits. This was also a way to increase additional investments from new and existing clients. To further hide the truth, Booth used the money obtained from new clients to make payments to those who had been with the scheme longer. Booth took more than $5 million from nearly 40 clients.

Booth is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison, one count of securities fraud, which carries a maximum sentence of 20 years in prison, and one count of investment advisor fraud, which carries a maximum sentence of five years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

The attorneys at ChapmanAlbin have helped hundreds of investors recover millions of dollars in money lost due to investment fraud and other misconduct. If you invested and lost money you may be able to recover. Call us today at 1-877-410-8172 for a free consultation.

Author: Philip Vujanov

Philip Vujanov is an associate attorney at ChapmanAlbin. He represents investors nationwide before the Financial Industry Regulatory Authority in arbitration and is an active member of the Public Investors Arbitration Bar Association.

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