A.G. Morgan CEO Pleads Guilty to $160M Investment Fraud Targeting Elderly Clients
By Staff
The chief executive of a New York-based registered investment adviser has pleaded guilty to federal securities fraud charges stemming from a scheme that prosecutors say defrauded hundreds of elderly and financially unsophisticated clients of more than $160 million.
Vincent J. Camarda, chairman and CEO of A.G. Morgan Financial Advisors LLC, entered his guilty plea in U.S. District Court for the Eastern District of New York. He faces up to 20 years in prison, restitution of at least $160 million, and forfeiture of more than $6.6 million, according to the U.S. Attorney’s Office for the Eastern District of New York.
The criminal plea runs parallel to civil fraud charges the Securities and Exchange Commission filed against Camarda, A.G. Morgan, and the firm’s former chief compliance officer, James E. McArthur, on April 3
According to court filings in both proceedings, Camarda and McArthur induced at least 431 advisory clients to purchase promissory notes issued by five private equity funds they created, managed, and owned between approximately June 2020 and December 2023. The defendants allegedly described the funds as conservative, secure, and low-risk. In reality, four of the funds invested entirely in a single high-risk mining venture, and the fifth invested exclusively in a startup coffee shop operated by Camarda’s son.
The criminal complaint alleged that Camarda told investors he was diversifying their capital across multiple mining companies, when in fact all the money went to a single firm that later failed to meet its interest obligations. He is also accused of personally misappropriating approximately $1 million by transferring client funds to his personal bank account.
The SEC estimates that investors lost approximately $123 million in unreturned principal, with some losing their entire life savings. In its civil complaint, the agency is seeking disgorgement, prejudgment interest, civil penalties, and permanent injunctions barring Camarda and McArthur from serving as investment advisers or participating in securities offerings.
Camarda and McArthur were previously registered representatives at LPL Financial, American Portfolios Financial Services, and other broker-dealers before forming A.G. Morgan. The SEC had also charged the firm in a separate action in 2022 in connection with an unregistered $500 million offering.
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