SEC Charges Southern California Stockbroker With Securities Fraud and Misappropriating Over $3 Million in Client Funds
On February 14, 2012, the Securities and Exchange Commission (SEC) filed a complaint against Brenda Esbach of Tustin, California charging her with numerous securities fraud violations. The activity in question began while Brenda Esbach was employed as an investment advisor with Ameriprise Financial Services and continued after she left Ameriprise and began working with Aventine Investment Services, Inc. and Purshe Kaplan Sterling Investments.
The SEC's complaint alleges that, instead of making investments as directed by her clients, Esbach misappropriated the funds using them to pay personal and business expenses, including private school tuition and trips to Las Vegas. Without admitting or denying the allegations, Esbach agreed to provide restitution to her victims in the amount of $2,561,873.
Esbach, who has also been the subject of several investor lawsuits and securities arbitration claims, is awaiting sentencing in a related Federal prosecution where she entered a guilty plea to one count of mail fraud and one count of money laundering back in September 2011.