Phillip Conley, Formerly of Merrill Lynch, Indicted for Role in Fraudulent Securities Offering

Conley was indicted on six counts of mail fraud and one count of securities fraud.

The Sonn Law Group is investigating allegations that Phillip Conley 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.

Phillip Conley (CRD#: 4799544) was charged by the SEC with conducting a $5.2 million fraudulent securities offering in April 2020. The complaint alleged that between January 2014 and September 2018, Conley induced investors to purchase securities by making a series of materially false and misleading statements and omissions concerning the legitimacy of the investments and use of investor proceeds.

Additionally, the complaint alleged that Conley failed to invest the proceeds as promised and instead commingled investor funds with his private bank accounts. He then used the majority of the funds to pay for his expensive lifestyle, which included luxury automobiles, private jet charters, extravagant jewelry, and other items. He also allegedly used new investors’ funds to repay older investors in a Ponzi-like fashion.

On August 5, 2020, Conley was indicted by a federal grand jury in the U.S. District Court for the Northern District of West Virginia on six counts of mail fraud and one count of securities fraud. The indictment alleged that between 2014 and 2019, Conley scammed 18 individuals across the United states, including churches, pastors, and even his own adoptive parents. 

Conley has six disclosures on his BrokerCheck report.

April 2020 Civil Judgment

• Initiated By: United States Securities and Exchange Commission
• Allegations: The Securities and Exchange Commission (“the Commission”) filed a complaint against defendant Phillip W. Conley (“Conley”) alleging that this matter involves an offering fraud orchestrated by Conley, a Morgantown, West Virginia-based former registered representative, in which he raised approximately $5.2 million from at least 20 investors through the fraudulent offer and sale of securities. Conley convinced some of his most trusting investors, including pastors and church congregants, to invest their money with one or more of the entities he controlled while knowing the investments were not legitimate, that he would make no securities investments on their behalf, and would instead spend their money like it was his own. Between January 2014 and September 2018, Conley perpetrated the fraud by claiming that he managed multiple private investment funds through his company ALPAX, LLC (“ALPAX”) and affiliated shell companies. Conley induced investors to purchase securities, including purported limited partnership interests, by making a number of materially false and misleading statements and omissions concerning the legitimacy of the investments and the use of investor proceeds. Conley told investors that he would invest their money in a variety of ventures, including construction of university student housing, high-yield fixed-income securities, oil and gas technologies and infrastructure, mineral rights leasing, and timber management, among other things. Other times, Conley simply told investors that he ran a private equity company and had an urgent need for investment funds to “close a big deal.” All of these representations were false. Conley never invested the investor proceeds as promised. Instead, he commingled the funds in the ALPAX checking accounts that he controlled and used the majority of the funds to support his lavish lifestyle, including private jet charters, luxury automobiles, opulent jewelry and clothing purchases, and to repay other investors with Ponzi-like payments. To further the appearance of legitimacy and give investors a false sense of security, Conley provided some of his investors with fictitious quarterly account statements, knowing that the balances and gains reported on the statements were entirely false. By engaging in the conduct, Conley violated, and unless restrained and enjoined will continue to violate, Section 17(a) of the Securities Act of 1933; Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder; and Sections 206(1), 206(2), and 206(4) of the Investment Advisers Act of 1940 and Rule 206(4)-8 thereunder.

December 2015 Regulatory Judgment

• Initiated By: FINRA
• Allegations: Respondent Conley failed to comply with an arbitration award or settlement agreement or to satisfactorily respond to a FINRA request to provide information concerning the status of compliance.
• Resolution: Letter
• Sanctions: Suspension
• Duration: N/A
• Start Date: 12/3/2015
• Regulator Statement: Pursuant to Article VI, Section 3 of FINRA By-Laws, and FINRA Rule 9554, Respondent Conley is suspended on December 3, 2015 for failure to comply with an arbitration award or settlement agreement or to satisfactorily respond to a FINRA request to provide information concerning the status of compliance.

February 2015 Customer Dispute

• Status: Settled
• Allegations: The client alleges the FA recommended the sale of an annuity which resulted in a large redemption fee and the proceeds were used to purchase another similar annuity. (1/27/12-2/29/12)
• Settlement Amount: $34,750.00

June 2011 Judgment/Lien

• Judgment/Lien Amount: $6,747.00
• Judgment/Lien Type: Civil
• Broker Comment:  This dispute with Equifax as of 7/1/2012, when Mr. Conley first learned of the lien’s existence. Mr. Conley states that this is a result of an identity theft issue that has been ongoing since 2007.

October 2009 Customer Dispute

• Status: Award/Judgment
• Allegations:  “Suitability, unauthorized”
• Damage Amount Requested: $75,174.67
• Damages Granted: $23,625.79

July 2008 Judgment/Lien

• Judgment/Lien Amount: $1,134.00
• Judgment/Lien Type: Civil
• Broker Comment:  This dispute with Equifax as of 7/1/2012, when Mr. Conley first learned of the lien’s existence. Mr. Conley states that this is a result of an identity theft issue that has been ongoing since 2007.

Contact Us Today

The Sonn Law Group is currently investigating allegations that Phillip Conley 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.