The former chief compliance officer of a brokerage firm was charged with fraud and money laundering for allegedly diverting money from overseas investors to family members in the Philippines.
William Michael Quigley, 47, of Seaford, N.Y., faces both criminal and civil charges for funneling $500,000 of the $800,000 he allegedly scammed from investors to his two brothers in the Philippines, according to authorities.
An indictment was unsealed Thursday, charging Mr. Quigley with conspiracry to commit wire fraud and money laundering conspiracy in connection with the investment scheme. He faces a maximum sentence of 20 years in prison.
Mr. Quigley, who was the compliance director for the brokerage firm Trident Partners Ltd. in Westbury, N.Y., convinced foreign investors to invest in well-known U.S. companies such as Dell Inc., Berkshire Hathaway Inc. and BlackRock Inc., as well as start-ups on the verge of going public, according to the Securities and Exchange Commission, which charged Mr. Quigley with fraud.
Instead of investing the funds, Mr. Quigley diverted them for his personal use and those of his brothers, Michael and Brian Quigley, according to authorities. They allegedly participated in the scheme by sending investors fake account statements using a fictitious firm name. The scheme went on for more than a decade,
the SEC alleged.
“We allege a classic situation of the fox guarding the hen house as William Quigley subverted his position of trust as compliance director and stole money from investors and his own firm,” said Andrew M. Calamari, director of the SEC's New York Regional Office.
Mr. Quigley's attorney, Barry M. Bodetsky, was not available for comment.
Trident Partners, was not aware of his fraudulent activity, according to information on Mr. Quigley's
BrokerCheck report.
"Once Trident Partners became aware of Mr. Quigley's suspicious activities, the firm terminated his employment and informed regulatory authorities," said Robert I. Rabinowitz, the attorney for Trident Partners, in a statement. "Trident Partners has confidence that the regulatory action that the SEC has taken is appropriate under the circumstances."
At the SEC, the case will be heard by an administrative law judge, the agency said.
Mr. Quigley is not licensed to act as a broker. In April, he was suspended for failing to respond to Finra's request for information. If he does not respond, he will be barred by the self-regulator on June 23, his BrokerCheck report states.
