A former Colorado stockbroker has been accused of investment fraud for alleged violations of the Colorado Securities Act. According to the allegations, the stock fraud involved the stockbroker illegally accessing investors’ accounts.
The Denver Post reported on August 15, 2012 that the Colorado Securities Commissioner has accused stockbroker Clinton D. Fraley and Fraley’s company, Wealth by Design Inc., of accessing investors’ mutual fund accounts without their approval and forging their signatures on checks. He then allegedly used investors’ money for personal matters, including buying himself a townhouse.
According to the complaint the stockbroker was entrusted with hundreds of thousands of dollars from Colorado investors. Fraley allegedly promised investors that their money would be invested in a well-balanced portfolio of investments. According to the lawsuit, Fraley solicited at least $500,000 from two Colorado firefighters. Of course, much of the money apparently was invested as promised.