Connecticut Banker and Registered Representative Pleads Guilty to Theft and Embezzlement, Barred from Securities IndustryMonday, January 7, 2019
The Securities and Exchange Commission (SEC) Division of Enforcement recently ordered that Connecticut bank employee and registered representative Stephen Carbonella be barred from association with any broker, dealer, investment advisor, and other entities related to the securities industry and barred from participating in any offering of penny stock.
According to Carbonella’s BrokerCheck profile, reported by the Financial Industry Regulatory Authority, Carbonella was associated with Webster Investment Services, Inc. (August 1999 to February 2007), UVest Financial Services Group, Inc. (February 2007 to October 2011), and LPL Financial LLC (October 2011 to September 2015), in office branches that are all located in Orange, Connecticut. Carbonella is not currently registered as a broker.
Though his BrokerCheck report does not show any disclosures, Carbonella pled guilty to one count theft, embezzlement, or misapplication by a bank officer or employee in an action brought by U.S. Attorney’s Office for the District of Connecticut on September 12, 2018. This criminal charge alleged that between February 2003 and April 2017, Carbonella embezzled nearly $900,000 from Webster Bank Corporation, a bank insured by the Federal Deposit Insurance Corporation. Carbonella allegedly took the money from account holders’ Certificate of Deposit accounts and concealed the misconduct by forging customers’ signatures and altering certificates of deposits.
Many times, brokerage firms can be held liable if they failed to supervise a broker who committed misconduct while registered at their firm. If you lost money due to Stephen Carbonella’s alleged scheme, you may be able to recover from him or his associated brokerage firms, Webster Investment Services, UVest Financial Services Group, Inc., or LPL Financial, LLC. Call us (1-877-410-8172) for a free, no obligation consultation. Since 1998, we have been fighting for victims of broker misconduct and investment fraud.