The former head of a New York-based advisory firm A.G. Morgan Financial Advisors, LLC, has pleaded guilty to charges in connection with an alleged US$160-million investment fraud scheme.
In a federal court in New York, Vincent Camarda, the firm’s former chairman and CEO, pleaded guilty to securities fraud and investment adviser fraud charges stemming from allegations that, between January 2017 and December 2024, investors were defrauded through several private equity investment funds.
According to court filings, investors were misled, both in offering memorandums, and in verbal representations, which claimed that the funds’ portfolios were less risky and better diversified than they actually were.
“Camarda repeatedly invested the victims’ funds in high-risk ventures that he knew the victims would not have invested in if they had been apprised of the true risks,” U.S. authorities alleged in a criminal information filed against him.
Additionally, it alleged that several material conflicts of interest weren’t disclosed to investors — including that Camarda received compensation from a mining venture that the funds invested in, and that he had served as president of another portfolio company.
Finally, U.S. authorities also alleged that Camarda misappropriated some of investors’ money for personal use, including to finance his personal travel, luxury goods purchases, and plastic surgery.
“This defendant used a series of lies to lure clients, including elderly and other vulnerable individuals, into investing with him, all while enriching himself,” said Joseph Nocella, Jr., U.S. attorney for the Eastern District of New York, in a release.
“We will aggressively prosecute investment advisors who betray their clients’ trust and commit crimes for their own financial gain,” he added.
Separately, the U.S. Securities and Exchange Commission (SEC) also filed civil charges against Camarda, A.G. Morgan, and the firm’s president, James McArthur, alleging that they breached securities rules in the scheme.
The regulator’s complaint seeks permanent injunctions, disgorgement with prejudgment interest, and civil penalties against all of the defendants, along with conduct-based injunctions against Camarda and McArthur.
Those allegations have not been proven.