[ by Melanie Gretchen ]

Can't Always Believe What You See - Even If The Other Seems to Have it All.

It was as if this Florida broker was trying to replicate the oversized, over-the-top lifestyle that Allen Stanford had carved out for himself years earlier - although in a smaller, somewhat garish manner.  Each relied on a steady stream of other people's money to live out his chosen fairy tale life.

For the Stanford wannabe, it all came crashing down in 2010, when this registered rep pled guilty to 2 counts of wire fraud and 1 count of unlawful monetary transactions.  As detailed in United States v. Healy, he was sentenced to 16 years in prison.  Three years into his sentence, the SEC is revealing its dealing of Healy.

SEC Findings and Allegations. Between 1997 and 2001, Weston, FL, resident Sean Nathan Healy, 41, worked for several broker-dealers, including (i) Chatfield Dean & Co., Inc., (ii) Stratton Oakmont Inc.; Barron Chase Securities, Inc., and (iii) Guru Investment Services Limited.  Between 2004 and July 2009, he took his business further by raising some $17 million from investors by promising them that he would use those funds to purchase stocks and commodities on their behalf.

However, rather than investing those funds, he support a lavish lifestyle for himself and his wife and used some of the funds to make Ponzi payments to investors.  Choice purchases include:

• a $2.4 million waterfront mansion
• $2 million of in-home improvements
• $1.5 million in men’s and women’s jewelry
• over $2.3 million of numerous exotic vehicles and sport cars, including a Bentley and several Ferraris, Lamborghinis, and Porsches

SEC Sanctions. Almost 2 years ago, on 4/15/10 in a civil action entitled Securities and Exchange Commission v. Sean Nathan Healy, Civil Action Number 1:09-CV-1330 (“SEC v. Healy”), the United States District Court for the Middle District of Pennsylvania entered by consent a bifurcated judgment against Healy.  Under the agreement, Healy is barred from association with any broker, dealer, investment adviser, municipal securities dealer, or transfer agent.  In addition, he is barred from participating in any offering of a penny stock, including: acting as a  promoter, finder, consultant, agent or other person who engages in activities with a broker, dealer or issuer for purposes of the issuance or trading in any penny stock, or inducing or attempting to induce the purchase or sale of any penny stock.

For further details, go to [SEC Release No. 69345, 4/8/13].

To contact Melanie Gretchen: melanie@compliance-insights.com.