A U.S. advisor pled guilty to fraud charges amid allegations that he stole investment proceeds from his clients over a 17-year period.
According to court filings, between 2007 and mid-2024, Jeffrey Thomas Higgins misled investors by claiming to be buying stocks for them below market value, then selling those stocks without the investors’ knowledge and diverting the proceeds to his own accounts.
Allegedly, Higgins concealed his activity by having trade confirmations sent to a post office box that he controlled and by creating fictitious account statements for the investors that purported to show high returns on their holdings.
The scheme misappropriated at least US$1.6 million from investors over the years.
Now, Higgins has pled guilty to a charge of investment advisor fraud. As part of the plea deal, he agreed to pay more than US$1.6 million in restitution.
He will be sentenced by a U.S. district court judge on Dec. 7.
After the scheme was uncovered in mid-2024, Higgins was terminated by his firm, Western International Securities, Inc., and he was banned by the U.S. Financial Industry Regulatory Authority Inc. for refusing to cooperate with the regulator’s investigation. He consented to that sanction without admitting or denying the self-regulatory organization’s findings.
Earlier this year, the U.S. Securities and Exchange Commission (SEC) also charged Higgins for violating securities rules in connection with the same conduct, although that case only applied to the period between 2017 and 2024.
In its complaint, the SEC seeks permanent injunctions, disgorgement with interest and civil penalties. Those allegations have not been proven.