A former broker and investment advisor, Patrick Noel Thayer, has been sentenced to 15 years in prison for defrauding a client of $1.31 million, according to prosecutors in Warren County, Ohio.
Charges and Sentencing Details
Thayer, 48, pleaded guilty to one count of securities fraud, one count of aggravated theft, and one count of identity fraud. As a result, he received consecutive five-year sentences for each charge. In addition to the prison time, Thayer has been ordered to pay over $1 million in restitution to the client.
Lack of Legal Representation
It is unclear who represented Thayer in the matter, as his case does not appear in the searchable database of Warren County court records. Furthermore, court records for a separate civil case brought against him by the Securities and Exchange Commission indicate that he also did not have legal representation for that case.
Timeline of the Fraud
The fraudulent activity took place in 2013 when Thayer was operating a tax-preparation service and working as a registered broker with SagePoint Financial. SagePoint Financial has since been absorbed into the Osaic (formerly Advisor Group) network of firms. During this time, Thayer opened a bank account in the victim’s name without her consent or knowledge. He then proceeded to forge her signature and used his tax company’s address instead of the victim’s address.
Osaic and LPL Representatives Fail to Respond to Comment Requests
Representatives from Osaic and LPL have not yet responded to requests for comment regarding a recent case of securities fraud. In this case, an individual took advantage of their position to sell securities using someone else’s name. The proceeds from these sales were then deposited into a fraudulent account controlled by the offender.
The money obtained through this scheme was used for various personal expenses, such as mortgage payments, car loans, credit-card bills, and even the purchase of a small house for a family member in Colorado. These actions came to light when the victim was contacted by the IRS in 2022 regarding the suspicious bank account.
Following the discovery of this fraudulent activity, Finra, the self-regulatory organization for the brokerage industry, launched an investigation. Despite multiple requests for information, the individual involved, Thayer, failed to provide any response. Consequently, Finra banned Thayer from the industry in November 2022.
In addition to Finra’s actions, the SEC also became involved in the case. They accused Thayer of repeatedly making fraudulent withdrawals between November 2013 and August 2022. In June 2023, the SEC filed a complaint against him, seeking justice for the victims. Soon after, a federal judge in Ohio issued a judgment, enjoining Thayer from further violations of securities laws. The judge also ordered Thayer to repay the stolen funds to the client, along with an unspecified civil penalty and interest.
