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FORMER INVESTMENT ADVISOR STEALS FROM INVESTORS IN PONZI SCHEME
By Erwin J. Shustak, Esq. of Shustak Reynolds & Partners, P.C. posted on Wednesday, January 18, 2017.
Erwin J. Shustak
Managing Partner
Location: San Diego, California
New York, New York
Phone: (619) 696-9500 (Ext. 109)
(800) 496-5900 (Ext. 109)
Email: [email protected]
Erwin Shustak, Esq.
619.696.9500 ex. 109
[email protected]
Massachusetts charged a former financial adviser, Stephen S. Eubanks, with stealing over $500,000.00 from friends, neighbors, and family members over several years. According to the complaint, filed by the Massachusetts authorities, Eubanks posed as a successful hedge fund manager who operated Eubiquity Capital, a limited liability company. He purportedly asked investors for money he intended to use to purchase stocks, options and other securities. Instead, Eubanks used most of the money to finance his lifestyle and repay earlier investors, a classic play on the Ponzi-scheme model where new investor money is used to repay earlier investors, giving the appearance of real returns to keep reeling in new suckers.
Some of the money Eubanks took from trusting investors was used to pay for vacations to Marth’s vineyard, boat payments, and partial payment of his federal tax debt. According to authorities, he lost all of the money invested.
Eubanks began his career with IDS Life Insurance Co. and American Express Financial Advisors. In 1994, he moved to Smith Barney where he worked for over three years before moving to UBS Financial Services. In 2004, he then moved to Bear Stearns before moving to Oppenheimer & Co. a year later. He has not been registered with a FINRA firm since 2010.
Shustak Reynolds & Partners, p.c. focuses in the areas of securities, financial services and complex business disputes. For more information, contact our managing partner, Erwin Shustak. More information is available at www.shufirm.com.
