On May 28, 2015, the Securities and Exchange Commission announced fraud charges against William Quigley.  He is accused of creating a scheme to steal from investors and from a brokerage firm where he worked as the director of compliance.

The SEC’s Enforcement Division alleges that was involved in a scheme to solicit investors to buy stock in well-known companies or supposed start-ups on the verge of going public.  The SEC alleges that:

• The securities were never purchased for the investors.
• Quigley wired the money out of the country or he withdrew it from ATM’s near his home.
• he had accomplices, two brothers who live in the Philippines.

For more information, click here.

Teaching Suggestions

• Have students prepare a position paper on how to protect themselves from investment fraud.
• Have students go to the Securities and Exchange Commission website (sec.gov) to learn how SEC protects investors and maintains fair, orderly and efficient markets.

Discussion Questions

1. How can federal, state, and local governmental agencies protect investors from investment fraud?
2. What punishment should be meted out to investment fraudsters?