Thomas Brenner, the former CEO of a broker-dealer that was expelled from the industry in 2017, is facing seven federal fraud charges linked to sales of private placement securities that purportedly financed medical laboratory developments.
According to a statement Tuesday from the Department of Justice, Brenner, 58, was the president of First American Securities Inc., of Orrville, Ohio.
The Financial Industry Regulatory Authority Inc. expelled First American Securities in 2017 after the broker-dealer failed to pay more than $300,000 in fines and disgorgement of commissions related to the sale of private placements that were “rife” with violations, according to the firm’s BrokerCheck report.
In March 2015, Brenner and other persons allegedly conspired to recruit Brenner’s clients to invest in the private placements, United RL Capital Services, according to the Department of Justice. Instead of apportioning the investors’ money as promised, Brenner allegedly used these funds for his benefit, including large purchases related to racecars and to pay taxes, according to the indictment.
Brenner’s attorney, Carolyn Kucharski, did not return a call Wednesday to comment.
Brenner faces seven charges: conspiracy to commit mail and wire fraud, conspiracy to commit securities fraud, mail fraud, wire fraud, securities fraud and engaging in a monetary transaction in property derived from criminal activity.
In 2018, the Securities and Exchange Commission brought charges against five men, including Brenner, and three connected entities for allegedly perpetrating a $102 million Ponzi scheme that defrauded more than 600 investors.
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Andrew is half-human, half-gamer. He’s also a science fiction author writing for BleeBot.