Principals of Enterprise Trust Company Barred from Industry for Unauthorized Collateral Pledges

Defendants allegedly fraudulently induced hundreds of customers of Advisory Financial Consultants, a registered broker-dealer, to transfer custody of approximately $49 million in mutual funds to Enterprise Trust Company, then secretly placed the AFC customers’ mutual funds into margin and other accounts to serve as collateral for leveraged margin trading, including options trading and short selling, for defendants’ benefit. At one point, more that $8 million of the AFC customers’ mutual funds were allegedly sold without their knowledge or approval to cover Enterprise’s margin debt.