Back in June, we told you about five former brokers charged by the SEC when the agency shut down their Ponzi scheme worth $102 million.
Santillo, Parris and three others recruited their investors by word of mouth, after buying client lists from brokers. Ultimately, 637 people were defrauded, many in the Rochester area. The entities they represented were not registered with any federal agency like the SEC or FINRA, nor were any of them registered brokers or investment advisors.
“The three principals who were running this scheme were living a rockstar lifestyle with investors’ money jet-setting to Vegas, New York and other places,” Mr. Silver explained. Santillo, who misappropriated over $13 million alone, bragged to neighbors about “having a lot of money.” They spent investor money on luxury cars and a “rock star lifestyle,” according to Mr. Silver.
After speaking with a number of defrauded investors and individuals involved with the case, Mr. Silver is also going after the brokers who sold their client lists to the five suspects. The brokers who sold their client list to the five suspects failed to vet them before selling or conduct meaningful due diligence.
WHEC also attempted to speak with the two NY suspects. No one would answer the door at Santillo’s home. Parris’s home was sold earlier this year, and all of his numbers disconnected, so they were unable to locate him. Investigators have visited the home several times since the sale looking for him.
Silver Law Group represents the interests of investors who have been the victims of investment fraud. Scott Silver is the chairman of the Securities and Financial Fraud Group of the American Association of Justice and represents investors nationwide in securities investment fraud cases. Please contact Scott Silver of the Silver Law Group for a free consultation at ssilver@silverlaw.com or toll free at (800) 975-4345.