UNITED STATES SECURITIES AND EXCHANGE COMMISSION

SEC Admin Release 34-84715, IA Release 40-5071 / December 3, 2018: 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 John C. Maccoll ("Respondent" or "Maccoll"). The Commission finds that on November 28, 2018, a judgment was entered by consent against Maccoll, permanently enjoining him from future violations of Section 17(a) of the Securities Act of 1933 ("Securities Act") and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder in the civil action entitled Securities and Exchange Commission v. John C. Maccoll, Civil Action Number 2:18-cv-12473-SFC-DRG, in the United States District Court for the Eastern District of Michigan. The Commission's complaint alleged that between 2008 and March 2018, Respondent Maccoll defrauded at least 15 of his retail brokerage customers out of nearly $4 million while working as a registered representative associated with a large, nationwide broker-dealer and investment adviser dually registered with the Commission. Respondent lied and used high pressure sales tactics to solicit certain of his retail brokerage customers to invest in what he described as a highly-sought-after, alternative, private fund investment through which they could diversify their portfolios, receive annual investment returns as high as 20% and have investment growth potential that was better than on the securities they held at Broker A. Most of the injured customers were elderly and retired and invested through their retirement accounts. Respondent Maccoll's statements to his customers were false as he did not invest the customers' money but stole it for his own personal use. To conceal his scheme, Respondent Maccoll instructed his customers not to tell others about the purported fund investment, provided some of his customers with fake account statements reflecting fictitious returns, and paid over $400,000 in Ponzi-like payments to certain of the customers to keep the scheme alive.

Order

Bar (Permanent)

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

Indefinite

12/3/2018

participating in any offering of a penny stock

Indefinite

12/3/2018

Michigan

Respondent John Maccoll, in connection with the offer or sale of securities, engaged in an act, practice, or course of business that operated as a fraud on other persons when he convinced many of his clients to liquidate legitimate securities holdings to invest in a fraudulent fund which did not exist, and instead used the proceeds of those legitimate securities liquidations to fund his own lifestyle and to perpetuate his fraud by making ponzi payments to prior investors, contrary to section 501 of the Securities Act, MCL 451.2501. Respondent John Maccoll, as a person who advised others for compensation on the advisability of investing in, purchasing, or selling securities, engaged in an act, practice, or course of business that operated as a fraud or deceit upon his clients when he advised them to liquidate legitimate securities holdings to invest in a fictitious fund that was used solely to benefit Respondent and to perpetuate Respondent's fraud, contrary to section 502(1) of the Securities Act, MCL 451.2502(1).

Notice and Order to Cease and Desist

Cease and Desist

Civil and Administrative Penalty(ies)/Fine(s)

$500,000.00

Michigan

The Administrator intends TO REVOKE THE SECURITIES AGENT AND INVESTMENT ADVISER REPRESENTATIVE REGISTRATIONS OF JOHN MACCOLL under section 412(2) of the Securities Act, MCL 451.2412(2), because he willfully violated the Securities Act; because he is subject to an order expelling him from a self-regulatory organization; because he is the subject of a cease and desist order issued by a state securities regulator; and because he has engaged in dishonest or unethical business practices in the securities industry within the previous 10 years, all which support the revocation of his securities agent and investment adviser representative registrations under the above-cited provisions of the Michigan Uniform Securities Act (2002), 2008 PA 551, MCL 451.2101 et seq.

Order

Revocation

Time frame: 2006-2018 Claimants allege that the FA recommended unsuitable investments, misrepresented the nature of their investments and traded their portfolio excessively in order to generate commissions.

$750,000.00

$1,500.00

Time Frame: October 1, 2015 to August 16, 2018 The client's attorney alleges the Financial Advisor misappropriated the client's funds.

$158,163.76

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

SEC Litigation Release No. 24230 / August 9, 2018: The Securities and Exchange Commission charged a former registered representative with defrauding his brokerage customers out of nearly $4 million in a long-running investment fraud. According to the SEC's complaint, John C. Maccoll, who was affiliated with the Birmingham, Michigan branch of a nationwide registered broker dealer and investment adviser, used high-pressure sales tactics to solicit at least 15 of his retail brokerage customers to invest in what he described as a highly sought after private fund investment. Most of the injured customers were elderly and retired and invested through their retirement accounts. Maccoll told his customers that the purported fund investment would allow them to diversify their portfolios, receive annual investment returns as high as 20%, and give them investment growth potential that was better than the growth they received in their brokerage accounts. As alleged in the complaint, Maccoll's statements to his customers were false - he did not invest the customers' money but stole it for his own personal use. In total, the customers invested nearly $4 million in the fraudulent scheme. To conceal the scheme, Maccoll allegedly instructed his customers not to tell others about the purported fund investment, provided some of his customers with fake account statements reflecting fictitious returns, and paid over $400,000 in Ponzi-like payments to certain of the customers to keep the scheme alive. The SEC's complaint, filed in federal district court in the Eastern District of Michigan, charges Maccoll with violating Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. By engaging in the conduct Maccoll, directly or indirectly, violated, and unless restrained and enjoined, will continue to violate, Sections 17(a)(1), 17(a)(2) and 17(a)(3) of the Securities Act. In addition, Maccoll has violated, and unless restrained and enjoined, will continue to violate, Section 10(b) of the Exchange Act and Rule 10b-5 thereunder. The U.S. Attorney's Office for the Eastern District of Michigan filed criminal charges against Maccoll.

Judgment Rendered

Injunction

Time Frame: January 3, 2011 to December 30, 2016 The client's attorney alleges that the former FA systematically withdrew funds from the account and diverted those funds to a fraudulent scheme.

$690,000.00

$545,251.30

Time Frame: December 6, 2017 The client alleges the FA told her to write out a check to JMAC011 as this would be a good way to hide the funds and protect them The alleged damages are estimated to be in excess of $5,000.00.

$95,791.95

Time Frame: April 19, 2017 to February 12, 2018 The client's attorney alleges FA led his client's astray and preyed upon them regarding their Hatteras investment and expects to be made whole The alleged damages are estimated to be in excess of $5,000.00.

$131,430.26

Time Frame: December 27, 2017 The client alleges his Financial Advisor processed an annuity distribution that he did not request The alleged damages are estimated to be in excess of $5,000.00.

Time Frame: January 4, 2010 to April 17, 2018 The client alleges she was told the interest on the investment was 9 to 10% and it would be higher. The alleged damages are estimated to be in excess 0f $5,000.00.

$497,999.15

Time Frame: April 19, 2017 to February 12, 2018 Allegations: The client alleges misappropriation, mismanagement and being told they would get a huge return on the investment and losses.

$942,520.33

FINRA

Respondent Maccoll failed to respond to FINRA request for information.

letter

Bar (Permanent)

All capacities

Indefinite

7/2/2018

Pursuant to FINRA Rule 9552(h) and in accordance with FINRA's Notice of Suspension and Suspension from Association letters dated March 29, 2018, and April 23, 2018, respectively, on July 2 2018, Maccoll is barred from association with any FINRA member in any capacity. 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 any capacity.

Time Frame: April 19, 2017 to January 3, 2017 to March 28, 2018 The client's daughter alleges the Financial Advisor defrauded her father.

$820,231.49

$900,853.93

Time Frame: April 19, 2017 to February 12, 2018 Client alleges she gave monies to FA to invest into an "outside investment" and has only received $40,000 back despite being told her account was worth considerably more. Client states she was told this was a "special offering" and to not discuss with anyone else

$239,801.35

Time Frame: January 3, 2017 to March 19, 2018 Allegations: The client's Attorney alleges that his client was led to believe that his Financial Advisor was going to place his money in a better and more suitable investment. The client's attorney alleges this was never done and he lost his entire UBS retirement account. The client's attorney finally alleges had major tax implications due to this. The alleged damages are estimated to be in excess of $5,000.00.

$348,347.43

UBS Financial Services Inc.

Discharged

FA was discharged after failing to cooperate into the Firm's investigation that he misappropriated money from a client. FA later informed the Firm that he misappropriated funds from 13 clients.

Time Frame: April 19, 2017 to February 12, 2018 Client alleges FA committed fraud.

$173,892.04

TIME FRAME: 2006 TO UNSPECIFIED END DATE. CLAIMANT ALLEGES HE WAS GIVEN UNSUITABLE ADVICE WITH RESPECT TO ASSET ALLOCATION OF HIS RETIREMENT ASSETS AND THE USE OF A 72(T) PLAN.

$450,000.00

$42,500.00

CLIENT ALLEGES FAILURE TO EXECUTE TRANSACTION AS REQUESTED RESULTED IN DAMAGES TO CLIENTS ACCOUNTS.

$45,000.00

$2,500.00

CLAIMANTS ALLEGE FINANCIAL ADVISOR MISREPRESENTED THE FEATURES OF SIX VARIABLE ANNUITIES THEY PURCHASED AT MORGAN STANLEY AND UBS

$243,000.00

$45,000.00

I CATEGORICALLY DENY THE CLIENT'S ALLEGATIONS. THE CLIENT HAD INNUMERABLE OPPORTUNITIES TO TRANSFER HIS ANNUITY SUB ACCOUNTS TO MONEY MARKET AND PRESERVE PRINCIPAL, BUT NEVER ACTED UPON IT. HE HAS BEEN IN THESE ANNUITIES FOR 4-7 YEARS AND IS ONLY NOW CLAIMING HE WAS MISLED.

CUSTOMERS ALLEGED, INTER ALIA, FRAUD AND BREACH OF FIDUCIARY DUTY IN CONNECTION WITH INVESTMENT IN TCWIDW TERM TRUST 2003 AND SOUGHT $50,000. IN COMPENSATORY DAMAGES.

$50,000.00

$49,000.00

W/O ADMITTING OR DENYING LIABILITY, DEAN WITTER AGREED TO SETTLE THE CLAIM FOR $49,000.00. I WAS NOT BROKER OF RECORD DURING THE ABOVE TRANSACTIONS. I WAS ASSISTING ANOTHER BROKER AS PER BRANCH MANAGER`S REQUEST. NIETHER THE BROKER OR MANAGER ARE STILL IN THE INDUSTRY TO MY KNOWLEDGE. I DID RECIEVE PARTIAL COMM. HOWEVER (50%). THE FIRM DID NOT ASK ME TO PARTISIPATE IN ANY FASHION IN THE FINANCIAL SETTLEMENT.

CLIENT ALLEGED UNAUTHORIZED TRADING, FORGERY, AND SUITABILITY. SHE SOUGHT $134,000.00 COMPENSATORY DAMAGES PLUS UNSPECIFIED PUNITIVE DAMAGES.

$134,000.00

$70,000.00

DEAN WITTER AND MR. MACCOLL DECIDED TO SETTLE THE CASE OF THE POSSIBILITY THAT [CUSTOMER]'S STATUS AS A WIDOW COULD APPEAL TO THE ARBITRATORS. THE CASE WAS SETTLED FOR $70,000.00 SLIGHTLY MORE THAN HALF OF THE CLAIM. IN ADDITION, DEAN WITTER CONTRIBUTED $7,500 TOWARD [CUSTOMER]'S LEGAL FEES. MR. MACCOLL WILL CONTRIBUTE $12,000.00 TO THE SETTLEMENT NOT PROVIDED