Corporate & Securities Law

Jeremy McGilvrey: Disgraced Broker Used Investors? Funds For Gambling Debts

By Keith Griffin

Former San Antonio broker Jeremy McGilvrey allegedly used the money he fleeced from investors to take care of personal business, which apparently included a bevy of Las Vegas casino debts, credit card bills and the purchase of a new Mercedes Benz.

McGilvrey?s fancy living came to an end in August 2009, following an investigation by the Texas State Securities Board and the Texas District Attorney?s Office. According to the indictment, McGilvrey promoted himself as a ?prudent, conservative financial advisor? who employed ?sound principles? to protect client funds and investments. Instead, McGilvrey later admitted that he diverted investors? funds for his personal use.

In one instance, McGilvrey solicited a $100,000 check from 85-year-old Anthony Knopp. According to authorities, it was Knopp?s understanding that McGilvrey would invest the money on Knopp?s behalf. As it turns out, McGilvrey used the investor?s cash to pay off other investors, as well as to pad his own pockets.

Thomas and Dorothy Crouch were two of the investors McGilvrey tried to pay off. The couple had previously filed a lawsuit against McGilvrey, charging they lost about $1.5 million after McGilvrey steered them into investments that included stock purchases in McGilvrey?s now-defunct investment firm - Hill Country Wealth - and supplying him with a substantial loan.

In December, Judge Maria Teresa Herr sentenced McGilvrey to 20 years in the Texas Department of Corrections. McGilvrey also was ordered to pay in excess of $1.9 million in restitution to the client he scammed. The restitution amounts could increase if other defrauded investors are identified.

If you had investment dealings with Jeremy McGilvrey, we encourage you to contact our securities fraud team. We can evaluate your situation to determine if you have a viable claim.

Full post as published by Representing Investors on January 14, 2010 (boomark / email).