Patric Ken Baccam, of Hemet, California, has been charged by the United States Securities and Exchange Commission (SEC) in a Complaint alleging that Hemet, inter alia, concocted a scheme to defraud investors in the sale of unsecured promissory notes. Securities and Exchange Commission v. Baccam, Docket No. 17-cv-172 (C.D. Cal. 2017).
According to the Complaint, while Bacaam was associated with Centaurus Financial, Inc., PR Group, Prim Group, and Precision Research, Bacaam engaged in the offering and sales of securities in a fraudulent fashion, wherein the products were sold outside the auspices of his brokerage firm in Baccam’s capacity of a non-registered broker.
Particularly, from October of 2010 to July of 2013, $963,000.00 had been accumulated from eighteen brokerage customers for purchase of unsecured promissory notes. Bacaam reportedly informed investors that their funds would be utilized to pursue a real estate endeavor. The Complaint revealed that in the course of Baccam’s solicitation of investors, Bacaam knew, or was reckless in not knowing, that he made fraudulent representations pertaining to the risk of the unsecured promissory notes, the experience of the issuers, use of the funds, and returns which were promised to be made.
Bacaam, according to the Complaint, utilized new funds received from investors to pay off prior investors, wherein he made it appear as though the venture had profited to entice additional investors to make contributions. Bacaam was alleged by the SEC to have violated Securities Exchange Act of 1934 Sections 10(b) and Sections 15(a), Rule 10b-5, and Securities Act of 1933 Section 17(a).
FINRA Public Disclosure reveals that Baccam has been identified in seven customer initiated investment related disputes containing allegations of Baccam’s misconduct while employed with Linsco, Private Ledger Corp., SunAmerica, and Centaurus Financial, Inc. Particularly, on July 6, 2004, a customer initiated investment related arbitration claim involving Baccam’s conduct was settled for $125,000.00 in damages based upon allegations that Baccam breached his fiduciary duties and effected annuity transactions which were not suitable for the customer.
On March 23, 2006, a customer was awarded $161,621.00 in damages according to an investment related arbitration claim involving Baccam’s misconduct, based upon allegations that Baccam effected unsuitable sales of annuity and life insurance contracts. Further, on July 5, 2007, a customer initiated investment related arbitration claim regarding Baccam’s activities was resolved for $197,000.00 in damages based upon allegations that Baccam effected unsuitable transactions in the customer’s account.
On August 21, 2014, a customer filed an investment related written complaint involving Baccam’s conduct, in which the customer requested $94,500.00 in damages based upon allegations that Baccam induced the customer to liquidate her security accounts and subsequently utilize the funds to make unsecured promissory note purchases. Subsequently, on October 20, 2016, a customer initiated investment related arbitration claim regarding Baccam’s activities was resolved for $300,000.00 in damages based upon allegations against Baccam including violations of Texas Securities Act, breach of contract, breach of fiduciary duty, fraud, and unsuitability in connection with funds that the customer lent Baccam pursuant to a promissory note arrangement.
Guiliano Law Group
Our practice is limited to the representation of investors. We accept representation on a contingent fee basis, meaning there is no cost to you unless we make a recovery for you. There is never any charge for a consultation or an evaluation of your claim. For more information, contact us at (877) SEC-ATTY.
To learn more about FINRA Securities Arbitration, and the legal process, please visit us at securitiesarbitrations.com
