UPDATE! Stephen Eubanks – Wire Fraud
Stephen Eubanks of Hingham, Massachusetts Pleads Guilty
Have you lost money with financial advisor Stephen Eubanks of Hingham, Massachusetts? We are continuing our investigation into allegations regarding Stephen S. Eubanks, who was arrested on November 29, 2016. According to the Hingham Patch, Eubanks was arrested and charged with wire fraud.
On April 11, 2017, Eubanks pleaded guilty to wire fraud, for taking $529,000 from investors and spending it on himself. The guilty plea was reported by the Patriot Ledger on April 11. It is claimed that there are 32 victims of this fraud.
Earlier in November 2016, similar allegations were made by the Massachusetts Securities Division against Stephen S. Eubanks, a former advisor at Bright Trading LLC. Massachusetts alleged that Eubanks ran a Ponzi scheme in which he took money from investors, including friends and neighbors.
Massachusetts alleged that Stephen Eubanks ran a purported hedge fund called Eubiquity Capital LLC. Eubanks represented that he was a successful hedge fund manager, but he primarily spent investors’ funds for his own benefit, including vacations to Martha’s Vineyard, boat payments, partial repayment of a federal tax lien, and restaurant bills. Investmentnews.com also ran a story about Eubanks and Eubiquity Capital.
Stephen Eubanks was a financial advisor and registered representative of Bright Trading LLC from March 2010 to August 2016. He worked out of his home in Hingham and also worked in Boston, Massachusetts. Eubanks’s BrokerCheck report discloses that he was previously the subject of three customer disputes and was also previously terminated by Oppenheimer in 2006.
Brokerage firms like Bright Trading LLC have a responsibility to adequately supervise all representatives who are registered through their firm. Brokerage firms also must take steps to ensure that their financial advisors follow all securities rules and regulations, as well as internal firm policies. When brokerage firms fail to adequately supervise their registered representatives, they may be liable for investment losses sustained by customers.
Israels & Neuman PLC is a securities and investment fraud law firm with offices in Denver, Colorado, the Seattle area, and Ann Arbor, Michigan. We represent investors in FINRA arbitration proceedings in all 50 states, including numerous investors in Massachusetts in the past. Our attorneys have represented over one thousand investors against many brokerage firms in the past.
Click to view: Eubanks, Stephen Massachusetts Complaint (2)
Click to view: Eubanks, Stephen BrokerCheck 11.1.16 (2)