Former Chief Compliance Officer Of Long Island Brokerage Firm Indicted On Fraud And Money Laundering Charges
Defendant Wired More Than $500,000 Of Investor Funds To Co-Conspirators In The Philippines
A two-count indictment was unsealed this morning in federal court in Brooklyn, New York, charging William Michael Quigley, the former Chief Compliance Officer of a registered broker-dealer in Woodbury, New York, with conspiracy to commit wire fraud and money laundering conspiracy in connection with a fraudulent investment scheme. Quigley will be arraigned later today before Magistrate Judge Arlene R. Lindsay at the United States Courthouse in Central Islip, New York.
The charges were announced by Kelly T. Currie, Acting United States Attorney for the Eastern District of New York, and Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
“Quigley and his co-conspirators allegedly engaged in a coordinated and sophisticated scheme built on lies and deceit to defraud overseas investors. Rather than use his training and expertise to protect these investors who were told that their money would be invested in well-known U.S. companies and funds, Quigley helped his co-conspirators steal the funds by transferring them to the Philippines and using them for his personal use,” stated Acting United States Attorney Currie. “We are committed to holding accountable those who abuse their positions of trust to deceive the investing public.” Mr. Currie thanked the Securities and Exchange Commission for its significant cooperation and assistance in the investigation.
“Operating under false pretenses, Quigley and his co-conspirators assumed the role of registered brokers who were working in close coordination with regulatory authorities here in the United States. In doing so, they allegedly carried out a scheme to siphon funds from victim investors overseas – a scheme that fueled their own greedy desires. Today’s indictment is a step forward in restoring the public’s trust and a reminder that this type of dishonorable behavior will not go unpunished,” stated FBI Assistant Director-in-Charge Rodriguez.
As alleged in the indictment, the defendant Quigley, together with his co-conspirators, represented to overseas investors that they were brokers at firms registered with the National Association of Securities Dealers (NASD) or the Financial Institution Regulatory Authority Inc. (FINRA) and that they would invest the investors’ money in companies and investment funds such as Dell, Berkshire Hathaway, and BlackRock. In reality, Quigley and his co-conspirators were not registered brokers and did not invest the funds as promised. Instead, Quigley personally opened several bank accounts in New York to receive the investors’ funds, and he and his co-conspirators transferred more than $500,000 of the $800,000 investor funds from these accounts to accounts in the Philippines. Quigley immediately withdrew more than $42,000 in cash for his personal use and made dozens of trips to different banks in an effort to conceal his cash withdrawals.
The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, Quigley faces a maximum sentence of 20 years of imprisonment.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions, and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
The government’s case is being prosecuted by the Office’s Business and Securities Fraud Section. Assistant United States Attorney Christopher Ott is in charge of the prosecution.
WILLIAM MICHAEL QUIGLEY
Seaford, New York
E.D.N.Y. Docket No. 15 CR 258