NY Attorney General Charges Advisor With Defrauding Elderly Clients
Investment advisor Dean Mustaphalli invested their money in a risky hedge fund, said Attorney General Schneiderman
June 14, 2017 at 05:00 PM
3 minute read
New York Attorney General Eric T. Schneiderman announced charges Wednesday against an investment advisor in the state and several entities he controlled with defrauding elderly clients out of millions of dollars.
The lawsuit against Dean Mustaphalli—who was suspended from the securities industry—was filed in New York's Supreme Court. The suit alleges that he engaged in a six-year scheme to defraud clients that were elderly and at or near retirement by investing their money in his hedge fund—without their knowledge and against their interest—that engaged in highly speculative and risky trading.
“It is shameful to rip off elderly New Yorkers who are trying to plan for retirement,” Schneiderman said in a statement. “As we allege, Dean Mustaphalli squandered and looted $10 million from hardworking individuals. New Yorkers deserve to know that their investments are safe—and financial professionals who won't play by the rules will face consequences.”
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