Firm proactively reached out to client and presented possible fraudulent withdrawals from client's account from February 2016 to July 2016.. Client confirmed charges in the amount of $23,317.98 were not authorized.

$23,317.98

$44,731.77

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

SEC Admin Release 34-88256; IA Release 40-5447, February 21, 2020: The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest that public administrative proceedings be, and hereby are, instituted pursuant to Section 15(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Section 203(f) of the Investment Advisers Act of 1940 ("Advisers Act") against Respondent Marcus Boggs ("Respondent" or "Boggs"). The Commission alleges that on December 18, 2019, a judgment was entered by consent against Boggs, permanently enjoining him from future violations of Section 17(a) of the Securities Act of 1933 ("Securities Act"), Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, and Sections 206(1) and 206(2) of the Advisers Act, in the civil action entitled Securities and Exchange Commission v. Marcus Boggs, Civil Action Number 1:19-CV-5672, in the United States District Court for the Northern District of Illinois. The Commission's complaint alleged, among other things, that from 2016 to 2018, Boggs stole more than $1.7 million from at least three of his investment advisory clients; that without his clients' knowledge or authorization, Boggs misappropriated his clients' money by selling securities in their advisory accounts and then transferring the proceeds to his personal credit card account; and that Boggs made more than 200 illegal transfers from three investment advisory clients' accounts to pay for his credit card purchases.

Order

Bar (Permanent)

association with a broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or NRSRO

Indefinite

3/16/2020

participating in any offering of a penny stock

Indefinite

3/16/2020

Firm proactively reached out to client and presented possible fraudulent withdrawals from client's account. Client confirmed charges in the amount of $202,431.21 were not authorized.

$202,431.21

$498,835.18

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

August 23, 2019, SEC Complaint filed August 23, 2019: Plaintiff U.S. Securities and Exchange Commission ("SEC") alleges as follows: The SEC brings this action against Defendant Marcus Boggs, who was an investment adviser representative at the Chicago office of a large financial services firm. From 2016 to 2018, Boggs stole more than $1.7 million from at least three of his advisory clients. Without his clients' knowledge or authorization, Boggs misappropriated his clients' money by selling securities in their advisory accounts and then transferring the proceeds to his personal credit card account. Boggs made more than 200 illegal transfers from three advisory clients' accounts to pay for his massive credit card purchases. Boggs presented himself as a successful investment adviser and financial services professional. He managed more than $40 million in assets held by more than 70 clients. Boggs was an active member of Chicago's philanthropic community, and regularly attended a variety of fundraising events for prominent Chicago cultural institutions. This allowed Boggs to present himself as a socially-minded financial professional, mingle with wealthy individuals, and have a platform for meeting potential clients. Between July 2016 and November 2018, Boggs cumulatively stole more than $1.7 million dollars from Client A, Client B, and Client C by making hundreds of unauthorized Automated Clearing House ("ACH") payments to his personal credit card account from the clients' accounts at the Financial Institution. In many instances, Boggs sold securities held in the accounts of Client A, Client B, and Client C and used the proceeds to fund the unauthorized transfers. The Clients did not authorize Boggs to sell their securities for this purpose. On other occasions, Boggs used cash in these clients' advisory accounts to fund the unauthorized transfers. Boggs did not tell the Clients that he had been using their funds for his personal benefit, or that he had been misappropriating funds from other clients. Client A, Client B, and Client C were not aware that Boggs was using the funds in their accounts at the Financial Institution to make payments to his personal credit card account. They did not authorize, and would not have authorized, Boggs to make such transfers. The Financial Institution discovered Boggs's theft in 2018. In November 2018, the Financial Institution placed Boggs on administrative leave, and terminated his employment the following month. By engaging in the conduct, Boggs violated Section 10(b) of the Exchange Act and Rule 10b-5, and Section 17(a) of the Securities Act. Boggs violated Sections 206(1) and (2) of the Advisers Act or in the alternative, by engaging in the conduct, Boggs aided and abetted the Financial Institution's violations of Sections 206(1) and 206(2) of the Advisers Act.

Judgment Rendered

Injunction

Undertakings

Violation of Title 18, United States Code, Section 1343 Wire Fraud

Convicted

Violation of Title 18, United States Code, Section 1343 Wire Fraud

FELONY

Dismissed

Firm proactively reached out to client and presented possible fraudulent withdrawals from client's account. Client confirmed charges in the amount of $545,813.21 were not authorized

$545,813.21

$1,101,660.29

FINRA

Respondent Boggs failed to respond to FINRA request for information.

Letter

Bar (Permanent)

All capacities

Indefinite

4/15/2019

Pursuant to FINRA Rule 9552(h) and in accordance with FINRA's Notice of Suspension and Suspension from Association letters dated January 11, 2019 and February 4, 2019, respectively, on April 15, 2019, Boggs is barred from association with any FINRA member in all capacities. Respondent failed to request termination of his suspension within three months of the date of the Notice of Suspension; therefore, he is automatically barred from association with any FINRA member in all capacities.

Firm proactively reached out to client and presented possible fraudulent withdrawals from client's account. Client confirmed charges in the amount of $133,285.82 were not authorized

$133,285.82

$323,162.22

Client alleges unauthorized ACH transfers made to an American Express account from the Client's account

$3,795,507.61

Through an internal investigation, it was found that there were unauthorized ACH transfers made to an American Express account from the customer's account.

$801,121.51

Merrill Lynch, Pierce, Fenner & Smith Incorporated

Discharged

Conduct including withdrawal of funds from client accounts without their knowledge or approval.

Client alleges there were unauthorized ACH transfers made to an American Express account from the Customer's account.

$1,005,169.59