New York City Attorney General Eric Schneiderman has charged a previous Citigroup consultant with defrauding senior financiers, inning accordance with a grievance submitted in New York federal court.
Dean Mustaphalli presumably moved the properties of many amateur financiers from conventional financial investment items like annuities, shared funds and exchange traded funds into dangerous short-term leveraged trading in a hedge fund run by him, inning accordance with the grievance. Mustaphalli left Citigroup in 2009 throughout an internal evaluation of his performance, ended up being a financial investment consultant, and by the end of 2010 signed more than 120 financial investment suggestions customers, Schneiderman’s workplaces states.
He presumably offered securities in his hedge fund to about half of them without notifying them of the fund’s dangerous nature nor describing that the fund was irregular with their financial investment goals– and in many cases, cannot supply using files for the fund, inning accordance with the grievance.
The providing files apparently consisted of deceptive details about its financial investment goals. As an outcome of his six-year plan, financiers lost practically all the cash bought Mustaphalli’s fund, which published a 97.6% loss by December 2014, inning accordance with the problem. His customers lost $10 million as an outcome, inning accordance with a declaration from Schneiderman.
In addition, Mustaphalli presumably withdrew $100,000 from the hedge fund to cover personal costs, inning accordance with the declaration.
Following an examination released in 2013, Finra suspended Mustaphalli in December 2014 for 2 years, Schneiderman’s workplace states. Mustaphalli’s New York financial investment consultant registration lapsed by January 2015, but he supposedly continued offering financial investments in his fund without informing customers about the Finra suspension and the expiration of his registration, the problem states.
Schneiderman obtained 2 orders to freeze the accounts in Mustaphalli’s entities and prohibit him from using financial investment guidance in New York, winning accordance with the problem.
Mustaphalli was utilized by Citicorp Investment Services from 1998 to 2007 and by Citigroup Global Markets from 2007 to 2009, inning accordance with his BrokerCheck profile.
Prior to signing up with Citicorp, Mustaphalli had invested less than a year each at Prudential Securities and Royce Investment Group, inning accordance with BrokerCheck.
His profile lists 16 consumer conflicts going back to 2001.