The owner of Carter Financial Consulting pled guilty to stealing more than $6.5 million from its clients.
Before you do business with this company, be sure to read about their criminal history.
The following review will help you learn more:
About Carter Financial Consulting, LLC
Carter Financial Consulting, LLC is an accounting firm that uses a thoughtful and creative approach to all services so as not to interfere with your everyday routine. They assert that their focus is on your talents, thus their job is to provide a transparent accounting system that will let you perform the task you want to do. It asserts that it helps its clients comprehend their objectives and business.
About Michael Barry Carter (The Owner of Carter Financial Consulting)
The owner of Carter Financial Consulting, LLC is Cater. Early in 2016, he came up with the first concept for Carter Financial Consulting, LLC. He then began to develop the concept based on interactions with clients and after completing a number of interesting projects. His skills from the military and the firms he worked in eventually began to overlap. In 2019, he switched to full-time management.
As per the District of Maryland’s U.S. Attorney’s office, after the SEC filed parallel charges in July 2020 for stealing roughly $6.15 million from brokerage customers and an elderly client of an investment where he was found guilty, Michael Barry Carter, a former financial advisor for Morgan Stanley, was apprehended and given a five-year term.
The SEC claims that several of the victims were people who knew Carter well and trusted him. Carter allegedly used fake internal documents as part of his scheme to wire over 60 unauthorized cash transfers from the customers’ and clients’ accounts to his personal bank account at a separate financial institution. The SEC then asserts that Carter provided investors with false account statements in an effort to conceal his criminal activity from them. Carter transmitted the actual amount statement and other correspondence to fictitious email accounts or controlled post office boxes.
All of the funds from Carter Financial Consulting, LLC were used by Michael Barry Carter to support his own lifestyle, which included paying for a house, a flashy car, and hundreds of thousands of dollars in credit card debt and cash withdrawals. Carter was in charge of his financial advisory customers’ families as well as his brokerage clients’, according to Marc P. Berger, Director of the SEC’s New York Regional Office.
The SEC filed a case with the U.S. District Court for the District of Maryland alleging that Carter had violated the Investment Advisers Act of 1940 and the Securities Exchange Act of 1934’s antifraud provisions. The SEC is requesting a civil fine, the recovery of allegedly illegally earned gain, plus prejudgment interest.
The allegations state that “MIKE” Carter, meanwhile, is suspected of fabricating internal forms between October 2007 and May 2019 in order to make 60 unlawful transfers from customer accounts. Before briefly working at Ameriprise, Carter allegedly had connections to Morgan Stanley from 2009 to 2011. From 2011 until July 2019, when, in accordance with his FINRA Broker Profile, he was dismissed for “allegations of theft of customer assets”. With Morgan Stanley in Mclean, Carter was once more registered.
As part of his plea agreement, Carter allegedly admitted stealing more than $50,000 from a non-profit sports organization, according to the Attorney’s office. The press said that Carter paid his home, credit card bills, and country club dues with all the money taken from his customer.
The most similar net proceeds Carter has received from the scam are a $4.36 million money judgment, which Carter will also be required to pay. The news reported that Carter paid back the non-profits after realizing his fraud had been uncovered, however, some papers claim he had already distributed $1.79 million to his victims.
Michael Barry Carter, the owner of Carter Financial Consulting, LLC, is accused of many offenses
The allegations against Michael Barry Carter are as follows:
- In July 2019, Morgan Stanley fired Michael Barry Carter, the founder of Carter Financial Consulting, LLC, following claims that he had swindled money from clients.
- In September 2019, Carter was accused by a customer’s power of attorney of opening an online liquidity access line without authorization. The POA for the clients states that Carter reportedly withdrew money from the account without authorization. The settlement amount for the lawsuit’s damages was $1,329,558.
- In September 2019, Carter was charged with taking money from another customer’s account without authorization. In this litigation, a settlement worth $676,174 was achieved.
Why is this Essential?
Stealing a customer’s money is one of the most terrible and dishonest abuses of power a broker can commit against an investment. Misappropriation occurs when a securities broker uses an investor’s funds for purposes other than those that were first discussed and agreed upon.
To do this, the broker may transfer the funds to their personal account for personal use or invest them in assets other than those that were originally planned. The investor’s money has been taken, regardless of how it was spent. Investors had confidence in the broken, but that confidence had been damaged.
Filing of a Complaint Against Carter Financial Consulting
The White Law Group is investigating whether his former employers are accountable for failing to appropriately monitor Michael Barry Carter because he may have engaged in a security scam. The brokerage firm they are working with may be liable for investment loss if the brokerage firms cease to monitor the business activities of their employees.
Brokerage firms may also be held legally liable for investment losses due to negligent supervision of their employees’ delinquencies if they abuse client accounts and engage in transactions that violate securities laws, such as making fraudulent claims. A nationwide securities fraud, securities arbitration, investor protection, and securities rules and regulations/company law practice, The White Law Group, LLC with offices in Chicago, Illinois.
The story suggests that before making any type form of investment, carefully read all the documents. Because of this, if you or someone you know suffered financial losses as a result of any motive, move, or suggestion made by Michael Barry Carter of the former Morgan Stanley in McLean, Virginia, you can discuss your losses or gains with any knowledgeable security lawyer.
Brokerage firms should monitor their employees, and if an employee commits a crime while serving as a corporate representative, the company may be held responsible for any losses incurred as a result of the employee’s negligence or fraud.
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