Paul James Marshall (“Marshall”), a former Bear Stearns manager with over two decades in the wealth management industry, perpetrated a brazen fraud against clients through his registered investment advisory (“RIA”) firm Bridge Securities. Marshall had clients wire funds to JP Morgan, and make checks payable to JP Morgan, and then deposited those funds directly into Bridge Securities’ accounts. From there, he transferred the funds directly to checking accounts without ever even buying any securities with client funds.
Marshall went so far as to steal funds from a client dying of colon cancer who was in desperate financial condition. After the client passed away, Marshall pursued the insurance money, representing that he would manage it, while in fact using it for his own personal benefit. Marshall additionally charged the deceased’s relatives $5,000 in fees for tax-related work on the deceased clients account that he had never in fact performed.
Marshall falsified account statements by creating phony securities positions and investment returns. When clients attempted to redeem funds or seek information on their investments, Marshall either ignored them or lied to them. Federal prosecutors stated in the sentencing memorandum: “This case is not about mismanagement, poor investment decisions or bad luck, this is a case about outright theft from victims, many of whom were elderly, and the profound losses they suffered as a result.”