Investment Losses with Timothy D. Burns – Purshe Kaplan Sterling Investments and CV Brokerage, Inc.

In May 2013, the U.S. Attorney’s Office for the Eastern District of Pennsylvania filed an indictment against Timothy D. Burns of Phoenixville, Pennsylvania.  Timothy Burns was charged with mail and wire fraud, related to a scheme from 2007 to 2012 to purchase shares of Facebook prior to any public offering of the stock.  Timothy Burns owned and operated ESG Family Services and ESG Wealth Management, which provided financial and investment advisory services to his clients.

Burns set up two entities, ESG Capital Partners I and ESG Capital Partners II, to raise money to purchase Facebook shares on a pre-IPO basis.  It is believed that Burns raised a combined $15 million from these two funds.  The U.S. Attorney’s Office alleged that Burns misappropriated at least $4 million of this to purchase a home for himself in Avalon, New Jersey.  It was also alleged that Timothy Burns used another $11.2 million to pay a fee to an individual for finding and providing access to Facebook shares, but did not disclose this to his investors.

Timothy Burns’ criminal matter is still pending.  In the meantime, the Pennsylvania Department of Banking and Securities revoked Burns’ securities license.  Burns was a registered financial advisor with Purshe Kaplan Sterling Investments from August 2005 to March 2012, and with CV Brokerage, Inc. from May 2012 to August 2012.

Broker-dealers like Purshe Kaplan Sterling Investments and CV Brokerage Inc. have a responsibility to adequately supervise all representatives who are registered through their firm.  Purshe Kaplan Sterling, CV Brokerage, and other broker-dealers also must take steps to ensure that their financial advisors follow all securities rules and regulations, as well as internal firm policies.  When broker-dealers fail to adequately supervise their registered representatives, they may be liable for investment losses sustained by customers.  If you have lost money through Timothy D. Burns and want to hear about ALL legal options, please visit or call us at 720-599-3505.