US Financial Industry Regulatory Authority (FINRA) has sued Roman Sledziejowski, president and owner of TWS Financial, a New York based brokerage firm, for defrauding three Polish customers of $4m through a scheme.
The independent regulatory body complained that the accused diverted client funds for his personal use while providing fabricated account statements to his customers.
During the period June 2009 to August 2012, Sledziejowski ordered the customers to transfer funds from their bank accounts or brokerage accounts as part of his scheme to Innovest, a company wholly owned and controlled by him.
The regulatory body also accused him for transfer of funds directly from the customers’ TWS brokerage accounts to Innovest without their permission and presented false account statements or "account snapshots," to conceal his misdeed.
FINRA found that over $3m of the customers’ funds remain unaccounted till date.
As per FINRA rules, the individuals and firms found guilty in violating financial regulation can be fined, ordered to pay restitution, censured, suspended or barred from the securities industry.