Michael Todd Crosswhite has admitted to committing a $1 million Ponzi scheme while working as a Financial Advisor under the umbrella of Allianz Life Insurance Corporation in the town of Forest, Virginia. Mr. Crosswhite pled guilty to the charges in July, 2012, and was sentenced to 33 months in jail on one count of wire fraud and one count of money laundering. The judge also mandated Mr. Crosswhite to pay a restitution of $997,864 to the victims.

During his court appearance, Mr. Crosswhite admitted to having defrauded many investors of almost $1 million by liquidating their investments accounts once he gained control without letting them know. He would then proceed to transfer the assets to accounts he created and would invest that money into risky products. His clients were unaware of these unauthorized transactions, which Mr. Crosswhite allegedly kept hidden by using some of the funds he took from investors to pay others off in a classic Ponzi scheme fashion.

If you are an investor who lost money by investing with Mr. Crosswhite, call Sonn Law Group to explore your legal options. Sonn Law Group is currently investigating the possible liability that Mr. Crosswhite’s former employers may have had for their failure to properly supervise Mr. Crosswhite, and their failure to uncover this alleged fraud.

Sonn Law Group is a nationally recognized securities law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies. For more information, you may call toll free 1-844-689-5754 or 305-912-3000.

Sonn Law Group is investigating claims regarding Joel Eziekel Blum (CRD #4905379, Goshen, New York). Blum recently submitted an AWC in which he was fined $10,000 and suspended from association with any FINRA member in any capacity for 20 days. See FINRA Case #2014040186601. Blum was associated with Merrill Lynch from May 2008 until his termination in February 2014. Blum has been associated with Ameriprise Financial Services, Inc., since February 2014. The Form U-5 filed by Merrill Lynch to terminate Blum's registration states that he was discharged for "conduct including failure to contact clients in advance of entering orders in non-discretionary accounts and mismarking order tickets as unsolicited." FINRA found that Blum executed discretionary transactions in customer accounts without written authorization to do so. In addition, Blum mismarked order tickets in connection with these transactions, inaccurately indicating that the trades were unsolicited, according to FINRA. In entering into the AWC, Blum neither admitted or denied FINRA's findings. Pursuant to FINRA Rules, member firms are responsible for supervising a broker's activities during the time the broker is registered with the firm. Therefore, Ameriprise or Merrill Lynch may be liable for investment or other losses suffered by Blum's customers. If you were a client of Ameriprise, Merrill Lynch, or Blum, and have suffered investment losses or financial irregularities, please contact Sonn Law Group to explore your legal options. Sonn Law Group is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies. To learn more, please call us at 844-689-5754 or complete our "contact form."
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