News and Press Releases

Port St. Lucie Securities Broker Charged in Wire Fraud Embezzlement Scheme

FOR IMMEDIATE RELEASE
August 8, 2013

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Addy Villanueva, Special Agent in Charge, Florida Department of Law Enforcement (FDLE), announce the indictment of Paul Elvidge, Jr., 53, of Port St. Lucie, for embezzling more than $1,000,000 from client investment accounts while acting as a securities broker for Cape Securities, Inc. and Seacoast Investor Services, Inc.

The indictment charges Elvidge Jr. with thirty-six counts of wire fraud and six counts of aggravated identity theft. Elvidge Jr. had a first appearance in federal court in Fort Pierce on August 8, 2013 before U.S. Magistrate Judge Frank Lynch, Jr. If convicted, he faces a maximum statutory sentence of up to twenty years in prison on each of the wire fraud counts, and a consecutive penalty of two years on the aggravated identity theft counts.

According to the indictment, Elvidge Jr. managed and operated Seacoast Investor Services, Inc., which later became Cape Securities, Inc., as a brokerage and investment firm in Port St. Lucie. As a registered representative and investment advisor, Elvidge, Jr. had access to clients’ brokerage accounts and was able to direct wire transfers from these brokerage accounts. From July 2010 to October 2012, Elvidge Jr. embezzled approximately $1,113,594 from client accounts by preparing fraudulent forms and forging account holders’ signatures. Elvidge Jr. used the fraudulently obtained monies to pay for personal and business expenses, and to fund his personal day-trading activities.

Mr. Ferrer commended the investigative efforts of the FBI and FDLE. This case is being prosecuted by Assistant U.S. Attorney Shaniek Maynard.

An indictment is only an accusation and the defendant is presumed innocent until proven guilty.

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A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.

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