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FSC Securities Corp Hit With $1.28 Million FINRA Arbitration Award Arising Out Of Ponzi Scheme Featured On “American Greed”.

By Erwin J. Shustak, Esq.  of Shustak Reynolds & Partners, P.C. posted on Friday, August 28, 2015.

FSC Securities Corp. has been assessed $1.28 million by a FINRA arbitration panel for losses sustained by several investors who were swindled by con man Aubrey Lee Price, who was featured as one of the rogues on the famous “American Greed” segments.  Price, who faked his death in 2012 to escape investigation, had sold his bogus investments through FSC Securities Corp and a number of FSC unnamed brokers. According to attorneys involved in the case, Price worked with two former FSC brokers to induce FSC customers to invest in the Ponzi scheme. Price had been an FSC broker between 2006 and 2008 but left the firm in 2009.

Prior to working at FSC, Price had worked at Banc of America Investment Services and Citigroup Global Markets. While at FSC, he was based in the firm’s Atlanta branch. In 2014 a federal judge sentenced Price to 30 years in prison for bank fraud.

The FSC customers who brought the FINRA arbitration alleged, and proved, that FSC did a poor job of supervising its brokers and the firm essentially was “asleep at the wheel”. They argued that FSC should have and could have discovered the Ponzi scheme and stopped it but was negligent in failing to do so.

In 2012, Price faked his suicide on a boat in Key West, Florida. He eventually returned to Florida, where he sold and grew marijuana and sometimes worked as a bodyguard for prostitutes, according to the FBI.  He was arrested on New Year’s Eve in 2013 following a routine traffic stop in Georgia.

Shustak Reynolds & Partners, P.C. has extensive expertise and experience in the areas of securities, financial services and business law. For more information contact Erwin J. Shustak, Esq,, at 619.696.9500 or via email at [email protected].

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