Livingston Broker Swindled Elderly Couple Out Of $280K: OAG

LIVINGSTON, NJ — Prosecutors say that Livingston broker Michael Alan Siegel approached an elderly New Jersey couple as a friend. He provided much-needed company as they dealt with a “significant health issue” within their family, spending hours each week with the husband talking about the stock market.

But when the ailing family member passed away, Siegel made his move, allegedly defrauding the couple out of at least $280,000, prosecutors with the New Jersey Office of the Attorney General claim.

On Thursday, Attorney General Gurbir Grewal and the New Jersey Bureau of Securities within the Division of Consumer Affairs announced the revocation of the agent registration of Livingston-based broker Michael Alan Siegel, as well as an imposition of $100,000 in civil monetary penalties against Siegel and his company, NJLI Advisors LLC.

According to prosecutors:

“Michael Alan Siegel befriended the elderly couple, who were in their 80s, ingratiating himself to them while they were dealing with a significant health issue within the family. Siegel spent hours each week with the elderly husband discussing the stock market. Shortly after the family member passed away, Siegel convinced the elderly couple to transfer their brokerage accounts to a broker-dealer with whom Siegel was associated. In the Summary Penalty and Revocation Order issued by the bureau, the bureau chief found that Siegel convinced the couple to write him checks to invest in options contracts, which he never purchased, pocketing the couple’s money and spending it on travel for him and his family members, high-end audio equipment and restaurants.”

Prosecutors charged:

“The bureau chief found that, between July 2013 and January 2016, Siegel exploited his relationship with the couple by having them write checks to him personally for the purported options investments and commissions for the purported investments. Additionally, Siegel violated the policies of procedures of two broker-dealers that Siegel was associated with by accepting checks, loans and gifts from the elderly couple who had accounts with the two firms.”

Prosecutors alleged:

“When the husband died, Siegel continued to direct the elderly widow to write him checks for purported options investments and commissions. The widow relied on Siegel for financial decisions and entrusted him with access to her email account, bank accounts and passwords.”

Prosecutors also allege that:

• The couple paid for a lease and insurance on a 2014 Cadillac SRX SUV for Siegel, which he was required to but did not report to the broker-dealer with which he was associated
• The widow co-signed on a lease for a Lexus for Siegel’s daughter and made at least one payment toward that lease, which Siegel was required to but did not report to another broker-dealer with which he was associated
• In addition to depositing funds into his personal accounts, Siegel also deposited funds into the accounts of NJLI Advisors, LLC, of which Siegel was listed as the sole owner, officer and director

According to the New Jersey Attorney General’s Office, investors can obtain information, including the registration status and disciplinary history, of any financial professional doing business to or from New Jersey, by contacting the bureau toll-free within New Jersey at 1-866-I-INVEST (1-866-446-8378) or from outside New Jersey at (973) 504-3600, or by visiting the bureau's website at www.NJSecurities.gov. Investors can also contact the bureau for assistance or to raise issues or complaints about New Jersey-based financial professionals or investments.

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