Saturday, October 30, 2010

Investigation of McLoed Ponzi Scheme Launched

Potential arbitration claims against certain of the securities brokerage firms with which Kenneth McLeod was associated during the time he engaged in the Ponzi scheme as alleged and described in the SEC's Complaint filed against his estate in June 2010.

The SEC's Complaint alleges that McLeod, through his benefits consulting firm, Federal Employee Benefits Group, Inc., and his registered investment adviser, F&S Asset Management Group, Inc., solicited government employees to invest in a government bond fund that did not exist. McLeod lured many of his investors through retirement benefits seminars he gave at government agencies nationwide, raising at least $34 million since 1988 from an estimated 260 investors around the country, according to the SEC.

While engaged in the alleged Ponzi scheme, McLeod was associated with several FINRA registered securities brokerage firms which, under the securities laws, had an obligation to reasonably supervise his activities.

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