Hairdressor, Marcy Salandra went to her stockbroker’s office at Investors Capital Corporation in McMurray Pennsylvania to withdraw money to buy a house. However, instead of meeting her broker Patricia S. Miller, she was greeted by three FBI agents.
Apparently, instead of the $681,944 that her statements showed her Investors Capital Corporation account was worth, the account was really only worth $254.
Investors Capital Corporation offered Ms. Salandra no explanation for disappearance of her funds, but the same day the FBI showed up at the Investors Capital Corporation office, Investors Capital disclosed to the Financial Industry Regulatory Authority (FINRA), that it discharged Miller on the same day, for allegedly the “misappropriation of funds, borrowing money from investors, fraudulent investment activity” and “creating false documents.”
Action News’ Investigation
Pittsburgh Action News Channel Four also asked Investors Capital Corporation what happened to Ms. Salandra’s life savings, but company also had no comment for Action News Investigators.
According to Action News, the company’s general counsel sent Salandra a letter not disclosing what they had discovered, but instead that merely “Miller had terminated her affiliation with Investors Capital.” According to Action News, Ms. Miller’s Mercedes Benz was parked in front of her house, but she was not home. According to her husband, Ms. Miller is in UPMC Mercy hospital for a possible stroke after the FBI arrived at her office.
Records obtained by Action News Investigates reveal Marcy Salandra is not the only Patricia Miller client worried about missing money. According to FINRA, just two days before the the FBI showed up at Miller’s office, a non-Investors Capital client alleged she misappropriated $80,000 he gave her in 2012.
According to the actual customer statements, instead of showing the actual address, Ms. Salandra’s account showed it was held at a post office box address.
FBI Arrested and Charged Patricia Miller
Over the weekend, Patricia Miller was arrested and charged with wire fraud. According to court records, when the FBI came to her office, they found her slumped at her desk, unconscious, an apparent suicide attempt. They found a half-written note to her husband and sons, saying she had deceived them for 12 years and taken money from clients.
Investors Capital Corp is Liable for Miller’s Conduct
It does not matter what happens to Patricia S. Miller. Investors Capital Corporation is liable for her conduct.
Investors Capital Corp operates out of Lynnfield, Massachusetts and purports to have more than 500 “independent” registered representatives, based in 400 branch offices nationwide. In substantial part, these offices are “franchise” offices wherein the broker pays all the expenses, in consideration for a higher commission pay-out. However, there is no on-site supervision at these geographically dispersed, remote locations. As such, Investors Capital Corporation is also substantially unable to directly supervise the sales practices or activities conducted at these “independent” offices, including in the case of Patricia Miller who was stealing from her clients for at least 12 years.
Guiliano Law Group
If you have been the victim of securities fraud and you have a complaint, you should consult with an attorney. The practice of Nicholas J. Guiliano, Esq., and The Guiliano Law Group, P.C., is limited to the representation of investors in claims for fraud in connection with the sale of securities, the sale or recommendation of excessively risky or unsuitable securities, breach of fiduciary duty, and the failure to supervise. We accept representation on a contingent fee basis, meaning there is no cost unless we make a recovery for you, and there is never any charge for a consultation or an evaluation of your claim. For more information contact us at (877) SEC-ATTY.