Carmel, Milazzo & DiChiara LLP (CMD) is investigating potential claims against securities broker Claus Foerster. Mr. Foerster, a broker formerly registered with Smith Barney & Co., Morgan Keegan & Co., and Raymond James Financial Inc., was indicted by a South Carolina grand jury for defrauding clients of $2.8 million over a 14-year-period. These charges follow FINRA’s 2014 decision to bar Mr. Foerster from the brokerage industry due to allegations that he was running a Ponzi scheme.
Mr. Foerster would tell clients he had an “excellent investment” for them at SG Investments, a fictitious company that Mr. Foerster said would provide higher returns than the brokerage firms that employed him, according to the indictment. Once clients agreed to invest in SG, Mr. Foerster told them to withdraw funds from their brokerage accounts and deposit the money into their personal banking account, according to the court document. The deposits were then transferred to him in the form of a check.
Mr. Foerster began committing fraud against clients at Smith Barney & Co. from 1997 to 2008, according to the indictment. He then worked at Morgan Keegan & Co. Inc. until 2012, when the firm was acquired by Raymond James, where he was employed through June, 2014.
If you or someone you know has a complaint or been defrauded by Claus Foerster, you may be able to recover your losses through securities arbitration. The attorneys at CMD are experienced in representing investors in fraud and Ponzi scheme actions against brokers and brokerage firms. CMD accepts cases on a contingency fee basis, which means we only get paid if you get paid. Your time to file a claim may be limited, so contact us today at (212) 658-0458 for a free and confidential case evaluation.