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WAUSAU, Wis. (WSAW) – A Wausau dealer and funding agent is barred from working towards after public data present he didn’t make investments practically $2 million his purchasers had entrusted to him. State data present it occurred to not less than a dozen folks round Wisconsin and Michigan.
Tony Liddle has been an funding advisor and dealer in each Rhinelander and Wausau for a couple of decade. In accordance with the Wisconsin Division of Monetary Establishments Division of Securities, he and his co-owner and then-wife, Allison, organized their very own funding advisory agency, Prosper Wealth Administration in Might of 2016. They minimize the ribbon and opened the doorways of the official workplace in downtown Wausau in February 2017.
Between that point, in line with the PWM web site which has since been taken down, Liddle acquired WomenCertified’s Girls’s Alternative Award for Monetary Advisors and Corporations in 2016. One in all his purchasers informed 7 Investigates the award was a part of why she selected to take a position with him. PWM provided funding advisement, retirement planning, monetary planning providers, and brokerage providers.
Previous to Liddle proudly owning and working his personal funding agency, he labored for Brad Sarkauskas as a shopper providers consultant beneath Sarkauskas & Associates in Rhinelander. Liddle finally bought one of many S&A franchise areas and property which grew to become PWM.
Now, Sarkauskas is representing a number of of Liddle’s funding purchasers who say Liddle stole their cash. It started in Might with Sarkauskas receiving a name from the daughter of a good friend and former authorized shopper who had invested with Liddle.
“The daughter had expressed issues that, that she thought there have been irregularities, and requested me to check out some transactions and the account,” Sarkauskas stated. “Upon reviewing some, some fundamentals, I additionally thought there have been some irregularities, requested some extra documentation, and instantly found what I believed to be the very apparent theft of $40,000.”
In Might, DFI audited Liddle and PWM and laid out a few of these irregularities in an order it issued in June itemizing a few of its investigative findings. It acknowledged Liddle met with an 80-year-old shopper in her residence in June 2021 to speak to her about probably buying L Bonds by GWG Holdings.
Following Liddle’s recommendation, the girl wrote a examine to “Prosper Wealth” for $40,000, with the expectation that it might buy these bonds. As an alternative, DFI notes it was deposited right into a checking account Liddle managed. It might have been troublesome for Liddle to buy the bonds anyway, as “GWG Holdings suspended L Bond gross sales in April 2021, two months previous to the date Liddle accepted” the girl’s cash to be invested, in line with DFI’s order.
Regardless of not buying the bonds, DFI states Liddle despatched his shopper an announcement displaying the cash within the GWG Holdings account and indicating she would obtain month-to-month funds of $185. Then, Liddle would pay her the $185 every month, however the funds didn’t come from any investments he made on her behalf.
“The place there’s smoke, there’s hearth and I suppose that was all the time the priority that the minute this got here up is ‘Oh boy, is that this it? Is that this it?’” Sarkauskas stated about figuring out the scope of the conduct.
DFI’s order doc states Liddle informed the securities division investigators that he began to obtain what he known as “loans” from purchasers in 2020, together with this 80-year-old lady.
In accordance with the findings, the broker-dealer Liddle was a registered dealer for, Landolt Securities, didn’t authorize the sale of the GWG Holdings bonds. Liddle was registered as a dealer with Landolt Securities between April 2020 and Might 2022. Landolt Securities separated from Liddle after DFI’s allegation.
Liddle informed securities investigators he had promissory notes proving the existence of the loans, however by no means gave copies to his purchasers. A later, up to date DFI order provides that purchasers informed investigators they by no means licensed any loans.
In accordance with a Wausau Police Division report from June, Sarkauskas alleges Liddle used his notary stamp together with his identify misspelled on not less than among the purchasers’ monetary paperwork. The officer notes the handwriting of “Anthony Liddle” and “Bradley Sarkauskas” confirmed similarities in letters.
“No less than a type of paperwork was filed with the Register of Deeds in Wisconsin, transferring a chunk of property,” Sarkauskas defined. “And it was stamped with my notary; I didn’t signal it; I used to be not current at that.”
He stated Liddle’s purchasers who had paperwork with this notary say Liddle was there on the signing, however Sarkauskas was not.
DFI’s order initially of June positioned a everlasting bar on Liddle from registering with the division and successfully working within the funding trade. The order listed three legislation violations:
- By means of the conduct described above, Liddle engaged in dishonest or unethical practices within the securities companies in violation of Wis. Stat. §§ 551.412(4)(m) and Wis. Admin. Code DFI-Sec 5.06(6).
- By means of the conduct described above, Liddle is topic to self-discipline pursuant to Wis. Stat.§ 551.412(4)(m) as a result of he borrowed cash from purchasers within the quantity of $1.8 million.
- By means of the conduct described above, Liddle violated Wis. Stat. § 551.501(2), when he, in reference to the supply, sale or buy of a safety, straight or not directly, omitted to state materials info mandatory with the intention to make the statements made, in gentle of the circumstances beneath which they have been made, not deceptive, together with the failure to tell MR (shopper) that GWG Holdings had suspended L Bond gross sales in April 2021 and that he was not licensed to promote them.
On June 7, Liddle signed a kind saying he was not going to contest the order and waived his proper to a listening to in regards to the findings and conclusions.
The Monetary Business Regulatory Authority, which is permitted by Congress to guard American buyers, tried to do its personal investigation in June, days after DFI’s preliminary order. FINRA acknowledged as a part of its conclusion that along with DFI’s findings, Liddle refused to supply info and doc or testify, per FINRA guidelines. Liddle filed a letter accepting the alleged violations as acknowledged by FINRA on the situation that FINRA wouldn’t carry any future actions primarily based on these findings. FINRA accepted and barred him from affiliation with FINRA.
In an up to date investigation and order filed in Marathon County Circuit Courtroom in September, DFI listed 13 folks from round Wisconsin and two from Michigan who invested with Liddle between March 2019 and July 2021. The overall invested between the 13 folks was upwards of $1.9 million.
DFI states these funds have been meant for use for investments together with however not restricted to buying L Bonds by GWG Holdings, with an annual mounted price cost to purchasers of 5.5% or extra.
Liddle adopted the identical sample as specified by the earlier order, with the up to date model including that as an alternative of investing the cash, he used the “funds for private and enterprise bills and to pay down debt.”
It states Liddle used a few of these funds to make these month-to-month funds to sure purchasers that “lulled buyers into believing that Liddle had invested their cash as he had promised.” He offered funds for 9 of the 13 buyers in complete practically $256,000; the others acquired no cost.
The entire buyers DFI interviewed denied making loans to Liddle or PWM and both denied or couldn’t keep in mind signing any promissory notes.
The September order up to date the three beforehand famous violations and included two extra:
- By means of the conduct described above, the Respondents are topic to self-discipline for participating in dishonest or unethical practices within the securities enterprise in violation Wis. Stat.§ 551.412(4)(m).
- As described above, Liddle violated Wis. Stat.§ 551.505 when he made or triggered to be made in a document that’s utilized in an motion or continuing or filed beneath this chapter, a number of statements that, on the time and within the gentle of the circumstances beneath which they have been made, have been false, deceptive in a fabric respect, or, in reference to the statements, omitted to state a fabric reality essential to make the statements made, within the gentle of the circumstances beneath which they have been made, not false or deceptive.
- By means of the conduct described above, the Respondents violated Wis. Stat.§ 551.501(2), after they, in reference to the supply, sale or buy of a safety, straight or not directly, omitted to state materials info mandatory with the intention to make the statements made, in gentle of the circumstances beneath which they have been made, not deceptive.
- By means of the conduct described above, the Respondents violated Wis. Stat.§ 551.501(3), when, in reference to the supply, sale, or buy of a safety, they engaged in an act, apply or course of enterprise that operated as a fraud or deceit upon one other particular person.
- By means of the conduct described above, the Respondents employed a tool, scheme, or artifice to defraud, and engaged in an act, apply, or course of enterprise that operates or would function as a fraud or deceit upon the buyers recognized in Desk 1 in violation of Wis. Stat. Wis. §§ 551.502(1)(a) and 551.502(1)(b) by utilizing buyers’ cash in a way opposite to what they’d represented, and for Liddle’s private profit.
Once more, Liddle signed a waiver and consent kind in August saying he was not going to contest the order and waived his proper to a listening to in regards to the findings and conclusions.
The buyers and their investments
The Prosper Wealth Administration web site, which has since been taken down, acknowledged a number of instances all through the way it works to assist purchasers perceive what they should create their “finest life.”
“We all know the monetary trade could be overwhelming. Planning your finest life means looking for out the recommendation of a monetary skilled you’ll be able to belief and can perceive you,” it acknowledged on its “Why Select Us” web page.
DFI’s September order states 10 of the 13 buyers have been not less than age 65 or older.
“One particular person is, I imagine, 73 years outdated. Her partner died 10 years in the past, about,” Sarkauskas stated. “She’s been retired for seven years, 73 years outdated, and she or he’s returned to work in a manufacturing facility stitching, which she likes to do, however she likes to do it for pleasure. She’s doing it now so she doesn’t lose her residence.”
It’s a life not like the Liddles’. Public Fb posts present that they went on not less than half a dozen holidays in 2021 alone.
Land data and chapter filings confirmed they owned a house in Stettin that offered in July for $725,000.
Main as much as Sarkauskas’ discovery in Might, Wausau Police arrested Liddle in February for driving whereas intoxicated, with a blood-alcohol focus double the authorized restrict. Wausau Police report witnesses noticed him crash into a light-weight pole, go away the scene, and slide right into a snow financial institution, with officers noting his driver’s facet tires have been flat and he was driving on the edges.
He and his spouse filed for divorce in April. It was finalized in September.
On June 1, his spouse reported to Marathon County dispatch that Liddle was appearing surprisingly, saying he was upset due to monetary points throughout the funding enterprise they owned collectively. As famous within the Wausau Police report, she estimated about $2 million was lacking. She additionally acknowledged Liddle “admitted to embezzling from their enterprise,” and she or he had knowledgeable Liddle an audit was about to start.
Liddle informed police “he had a bunch of unhealthy issues happening in his life proper now and he was having a tough time. Anthony defined he was upset over his marriage ending and he had not been doing proper by his purchasers from his monetary funding enterprise.”
In September Liddle’s now-ex-wife filed for chapter 7 chapter and Liddle did the identical in November. Liddle ended up with far fewer property when the couple cut up. He listed about 15% of his ex-wife’s complete. About 40% of Liddle’s complete property he’s claiming as exempt.
Their filings present they share lots of the similar liabilities, together with Liddle’s former purchasers, although his ex-wife lists all the money owed associated to PWM as “alleged private legal responsibility declare for former partner at Prosper Wealth Administration.”
That features debt the couple owed in a settlement to Sarkauskas and his household from a 2018 Milwaukee civil case. Sarkauskas Enterprises and the Sarkauskas members of the family related to the enterprise offered a few of their franchises and property to the Liddles and their firm, Sark Investments in 2012. Years later, Sark Investments would merge into the Liddles’ different firm, Prosper Wealth Administration.
Courtroom paperwork state the couple signed promissory notes to make sure month-to-month funds for 9 years. They have been making these funds till October 2018. Just a few weeks after the funds have been due, the Sarkauskases filed go well with saying they violated the phrases of the sale agreements, and that the acceleration provisions within the contract have been owed, particularly the whole unpaid stability of the sale settlement. The 2 sides finally settled.
Liddle’s ex-wife included the debt from this case in her chapter filings, Liddle himself, didn’t.
In complete Liddle is reporting greater than $3.3 million in liabilities. As for the greater than $1.6 million Liddle is ordered to pay in restitution to his former purchasers, Sarkausaks stated realistically, Liddle most likely won’t be able to pay the debt.
“I feel Mr. Liddle goes to have critical points to cope with, however I hope that issues work out very properly and he’s in a position to pay this a refund and he has a shiny future sometime. However within the meantime, we have now people who find themselves struggling and, and, and threat dropping their houses. So yeah, I hope he’s in a position to pay him again.”
Supervising entities
Liddle was a registered dealer beneath two totally different brokerage companies in the course of the time the 13 purchasers first invested with him. Typically, brokerage companies have supervisory necessities over their registered brokers.
Western Worldwide Securities, which Liddle was registered beneath between 2012-2020, didn’t finally reply to 7 Investigates’ request to interview and remark. Disclosures by FINRA be aware 18 occasions, together with a number of alleging supervisory rule violations, together with throughout timeframes Liddle was registered with WIS.
Liddle was registered beneath Landolt Securities from April 2020 till Might 23, 2022 when it allowed Liddle to resign as a result of allegations towards him. Landolt declined a request to interview, however Lloyd Schwed, its’ lawyer offered an announcement and answered some questions over e-mail. Schwed stated although he was a registered agent and licensed to promote authorised securities by Landolt, “Tony Liddle by no means performed any securities enterprise by Landolt Securities,” which incorporates actions like promoting bonds or shares.
Whereas DFI famous examinations and associated findings aren’t public info, Schwed stated Wisconsin securities regulators performed their very own audits of Liddle and PWM in 2020 and 2021 and didn’t discover any wrongdoing.
Schwed acknowledged they totally complied with all of FINRA’s supervision guidelines, together with the record-keeping necessities. He clarified that when Landolt questioned Liddle, “he was not truthful,” in his solutions.
“Importantly, the Wisconsin securities regulators made no complaints relating to Landolt Securities’ supervision,” Schwed acknowledged.
DFI answered in an e-mail to 7 Investigates it has an open investigation relating to Landolt Securities.
Schwed’s preliminary formal assertion reads:
“Tony Liddle was an unbiased agent affiliated for a time period with Landolt Securities, however he engaged in all of his wrongdoing by his separate and unbiased, family-owned firm, Prosper Wealth Administration.
Mr. Liddle hid his improper actions from each Landolt Securities and Wisconsin state regulators, and Mr. Liddle has had no affiliation or connection to Landolt Securities since Might 2022.”
FINRA acknowledged it doesn’t touch upon investigations or arbitration proceedings. Sarkauskas’ Heritage Legislation Workplace, is representing 16 folks and dealing to discover a solution to restore these purchasers. Halling & Cayo, S.C. additionally posted it initiated an arbitration motion with FINRA towards Landolt Securities.
DFI’s director {of professional} registration and compliance bureau beneath the Division of Securities, Deborah Fabritz stated to one of the best of their data, the 13 purchasers listed within the order from September are the one ones who anticipated to have their cash invested on their behalf. She requested if every other individuals who imagine they’ve been victimized and haven’t been recognized ought to contact their workplace.
Liddle was additionally registered as an insurance coverage agent. The Wisconsin Workplace of the Commissioner of Insurance coverage acknowledged his license has been suspended primarily based on the allegations within the DFI order. It has an ongoing investigation and a listening to is pending.
7 Investigates reached out to quite a few legislation enforcement businesses on the federal, state, and native ranges. Some native businesses famous their investigation was despatched on to the Wisconsin Division of Justice Division of Prison Investigations. That division wouldn’t affirm or deny the existence of an investigation, and the FBI acknowledged the identical.
Copyright 2022 WSAW. All rights reserved.
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