Tuesday, May 12, 2009

Broker ripped off nun

The Financial Industry Regulatory Authority has barred stockbroker William Joseph Boyle from the industry for ripping off four investors including a then 64 year old nun who had inherited about $532,000.

Boyle worked for Legg Mason and later Citigroup although neither group knew of his scheme, Associated Content reports.

The youngest victim was a 64-year old Catholic nun that had inherited about $532,000 - all in mutual funds - from her mother when she passed away in 2004. Because the nun took a vow of poverty, she wanted the money to go to her religious order. Boyle, who was also the mother's stockbroker, had other ideas.

After the nun had transferred the mutual funds in an account in her name, Boyle recommended another investment.

In order to fund it, holdings in the nun's account in the amount of $125,000 were sold.

A check for the proceeds went to her. Boyle told her to endorse the check and send it back to him. She did. When Boyle received it, he deposited the check in his personal account.

Later in 2005, Boyle sold the rest of the nun's holdings. At the same time he had her sign a letter of authorization that he had created.

This letter of authorization instructed Boyle's employer - Legg Mason - to write a check for the proceeds to an account controlled by Boyle.

Boyle used the money to fund International Sport Management LLC - a company he founded in order to provide financial services to "aspiring professional athletes," according to FINRA.

FINRA says it received information regarding Boyle's misconduct in November 2007, Financial Advisor Magazine says.

Although neither Legg Mason nor Citigroup was a party to this action, Legg Mason reimbursed the nun for the remainder of the money that Boyle had misappropriated.

In settling this matter, Boyle neither admitted nor denied the charges, but consented to the entry of FINRA's findings.
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