“We’ve got absolutely supported and cooperated with the legislation enforcement investigation that led to the indictment returned towards Molo final summer time. The few Edward Jones shoppers impacted by Molo’s misconduct have all been made complete and stay shoppers of our agency.”

FINRA suspended Molo on Oct. 25, 2021, after he failed to answer the regulator’s request for data, his BrokerCheck report confirmed.

Journey, Lottery Tickets

In response to the indictment, from 2018 to early 2021, Molo falsely represented to shoppers that their investments with him could be income-producing and tax-free, and that they’d obtain common, periodic curiosity funds.

However Molo didn’t intend to take a position consumer funds and as a substitute misappropriated their cash to pay for private bills, together with Cadillac XT5 and GMC Yukon sport-utility autos, dwelling transforming and building prices, lottery tickets, journey and procuring bills and money funds to members of the family, the indictment alleges.

On account of Molo’s scheme, he prompted not less than three shoppers to endure losses totaling $778,000, in accordance with the indictment.

SEC: Victims Have been All Seniors

The SEC filed a separate criticism towards Molo in the identical court docket on Nov. 23, 2021, making the identical allegations because the Justice Division and declaring the defrauded shoppers have been older shoppers.

The SEC’s criticism alleged that between January 2019 and November 2020, Molo stole a complete of about $800,000 from two of his funding advisory shoppers and one in every of his brokerage clients.

In response to the criticism, Molo persuaded the three buyers to switch cash out of their advisory and brokerage accounts to a different checking account, purportedly to put money into tax-free bonds. The criticism alleged that, in actuality, the bonds didn’t exist, and as a substitute of investing the cash, Molo used it to pay private bills.

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