Former Mossic PA Financial Planner Pled Guilty to Ponzi Scheme
Jason Muskey of Mossic, PA, a former Ameritas Investment Corp. broker, well-known Moosic business man and prior president of the National Association of Insurance and Financial Advisors-PA, pled guilty on February 17, 2015, to money laundering, identify theft, and mail fraud in the connection with the theft of over $2M from clients– many of whom were Muskey’s relatives and close friends. Federal prosecutors have indicated their pursuit of Ameritas, who prosecutors argue is ultimately responsible for the management of Muskey.
Middle District of PA US Attorney’s Office
According to US Attorney’s Office for the Middle District of PA, Muskey forged his clients’ signatures, subsequently extracting money from their investment accounts and depositing the funds into his personal account. Muskey was alleged to have taken the stolen money to purchase time shares in the Cayman Islands, properties, and two boats.
Back on June 4, 2014, the United States Secret Service launched an investigation into Muskey for alleged theft and forgery associated with his financial services firm, Muskey Financial Services. Muskey closed down operations at his business, located at 3703 Birney Ave., on June 2, 2014 as a result. Muskey was terminated by Ameritas Investment Corp. shortly after the United States Secret Service launched their investigation.
On June 26, 2014, Berger was also barred from association with any FINRA-registered firm in all capacities after Berger failed to cooperate with a FINRA investigation, although information pertaining to the requested information by FINRA is unavailable.
Registered representatives who do not cooperate with FINRA’s investigations often face a permanent bar from practicing in the securities industry as such lack of cooperation violates FINRA’s Rule 8210 – requiring that no member or person shall fail to provide information or testimony or permit an inspection and copying of books, records, or accounts pursuant to the rule. FINRA typically accompanies a Rule 8210 violation with a Rule 2010 violation when individuals, according to FINRA, do not appear to observe high standards for commercial honor and just and equitable principles of trade.
Settled & Pending Customer Disputes
Public disclosure records reveal that Muskey has been the subject of a myriad of customer disputes between 2014-2015, 8 of which have settled and 3 currently pending. Disputes which have been settled included claims of embezzlement, conversion of funds, unlawful taking of funds, securities fraud, forging of documents, and breach of fiduciary duty. Collectively, Muskey’s aggrieved clients have settled for over $1.2M in damages. Muskey’s three pending disputes involve claims that Muskey stole funds to purchase an annuity, securities fraud, breach of fiduciary duty, misappropriation, forgery, breach of contract, and intentional infliction of emotional distress.
Courts and securities arbitration panels, in identical circumstances, have long held registered representatives responsible for the conduct of misappropriation and stockholder theft. Additionally, securities brokerage firms have a duty to supervise their brokers and the sales practices of their brokers, and to review customers statements for, among other things, evidence of suitability, unauthorized trading, or excessive activity. Muskey’s customers are urged to consult with an attorney or take legal action to preserve their rights.
Guiliano Law Group
Our Practice is limited to the representation of investors in claims against stockbrokers and investment professionals for fraud, the sale of unsuitable investments, breach of fiduciary duty, failure to supervise. National Practice. Contingent Fee. Free Consultation. If you have suffered losses a the result of the recommendation of inverse and leveraged ETFs by your stockbroker or investment professional and were unaware of the risk associated with these securities, contact us for a free confidential evaluation at (877) SEC-ATTY.