FINRA Permanently Bars Broker Operating Ponzi Scheme

July 29th, 2009		\| More
The Financial Industry Regulatory Authority (FINRA) has permanently barred Kenneth George Neely of St. Louis for operating Ponzi scheme involving AXA customers and Stifel Nicolaus & Co. Inc. Other victims of his scheme include his family members, his friends as well as member of his church. According to FINRA, Mr. Neely’s scheme was orchestrated through St. Charles REIT, a fictitious real estate investment trust. Mr. Neely abused customer funds for his personal use by making false invoices and having investors make payments to his wife to avoid bank inspection. In one of the instances he stole $154,000 from a friend and $10,000 from the friend’s daughter, falsely promising a higher return on the St. Charles REIT investment. He used up most of the balance to pay his personal debts and expenses. In total Mr. Neely misused $600,000 in investors’ assets, half of which he used for his personal favor.

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