Livingston Broker Gets 3 Years In Jail, Scammed Elderly Couple

LIVINGSTON, NJ — An investment broker from Livingston was sentenced to three years in state prison for scamming an elderly couple out of more than $270,000, prosecutors announced Friday.

Michael Alan Siegel, 62, of Livingston, was sentenced to three years in state prison by Superior Court Judge Verna Leath in Essex County, the New Jersey Attorney General’s Office stated.

Siegel pleaded guilty on June 24 to an accusation charging him with second-degree theft by deception. He must pay full restitution of $270,283 to the woman whose funds he stole, as her husband has since passed away, prosecutors said.

The New Jersey Bureau of Securities initially investigated Siegel and commenced a civil action. On Feb. 1, 2018, the Bureau of Securities revoked Siegel’s registration as a broker-dealer agent in New Jersey and assessed civil monetary penalties of $100,000 against him.

The Bureau of Securities then referred the matter to the Division of Criminal Justice.

According to a statement from prosecutors:

“Siegel befriended the couple prior to becoming their investment broker. When he started working for a brokerage firm in 2013, he convinced the couple to transfer their investment accounts, which totaled well over $2 million, to his new employer. When Siegel moved to another brokerage firm in the spring of 2014, the couple again transferred their investments so Siegel could manage them.”

Prosecutors continued:

“Beginning around January 2014, Siegel encouraged the couple to invest in what he called an “options” program, which he characterized as a safe institutional trading program for preferred customers. He further convinced the couple that they needed to make their checks for investments in the program payable to him. The couple provided Siegel with 49 checks totaling $270,283 to invest in the program. In fact, the options program was entirely fictitious and Siegel used those monies for his personal benefit.”

Prosecutors concluded:

“After her husband died in 2015, the woman investor and her daughter, who also invested through Siegel, began to question the management of their investments by Siegel and the firms where he worked. On Oct. 28, 2016, the Financial Industry Regulatory Authority (FINRA) barred Siegel from associating with any FINRA member in any capacity. Following the FINRA ruling, the Bureau of Securities initiated its investigation of Siegel.”

Prosecutors said investors who believe they have been defrauded are urged to contact the Division of Criminal Justice toll free at 866-TIPS-4CJ (866-847-7425) or the Bureau of Securities toll free at 866-I-INVEST (866-446-8378). Callers outside New Jersey can contact the Bureau of Securities at 973-504-3600.

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