Zabala is accused of defrauding investors in his company.
The Sonn Law Group is investigating allegations that Craig Zabala defrauded investors. If you or a family member has suffered losses investing, we want to discuss your case. Please contact us today for a free review of your case.
Craig Zabala is the owner of Concorde Group Holdings Inc. Zabala was barred by FINRA in August 2019 after failing to provide a complete response to its investigation of his outside business activities and potential participation in private securities transactions. Zabala was charged by the SEC on September 24, 2020 with defrauding his investors.
The SEC alleges that, between February 2015 and August 2019, Zabala raised approximately $4.38 million from 17 investors throughout the United States, purportedly to develop Concorde into a merchant bank for mid-sized companies and to invest in affiliate entities.
Zabala is accused of misrepresenting to investors that Concorde had raised more than $24 million and was close to completing a $25 million offering. Zabala allegedly misappropriated over $3 million of investor funds by making almost $2 million in unauthorized payments to himself and his longtime girlfriend, Doreen McCarthy, and $1.2 million in Ponzi-like payments to earlier investors in an affiliate company. Zabala allegedly used investor funds for personal expenses, including car payments and international travel expenses for himself and McCarthy.
The SEC’s complaint, filed in the U.S. District Court for the Southern District of New York, charges Zabala with violations of the antifraud provisions of Section 17(a) of the Securities Act and Section 10(b) of the Securities Exchange Act and Rule 10b-5 thereunder. The SEC seeks injunctive relief, disgorgement plus prejudgment interest, and civil penalties. Zabala was also charged criminally by the U.S. Attorney’s Office for the Southern District of New York.
Contact Us Today
The Sonn Law Group is currently investigating allegations that Craig Zabala defrauded investors. We represent investors in claims against negligent brokers and brokerage firms. If you or your loved one experienced investment losses, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form.