Coastal Investment Advisors President Enjoined and Barred for Defrauding Clients

Defendant, the former president of Delaware-based Coastal Investment Advisors Inc. and its affiliated broker-dealer, took funds from elderly and unsophisticated advisory clients and brokerage customers and, instead of investing the money as promised, used it to pay for his own expenses. He concealed the scheme by providing investors with false account statements, trade confirmations, and other untrue information that purportedly reflected their investment holdings and repeatedly told investors that their fictitious “investments” were performing well. In addition to this proceeding, defendant was criminally convicted and sentenced to 99 months imprisonment, and administratively barred from the securities industry.