Home > Investor News > Martin Wegener Recovery: Investors File Lawsuits

Martin Wegener Recovery: Investors File Lawsuits

As investors file lawsuits for financial recovery in the alleged scam by stockbroker Martin T. Wegener, it turns out that New England Financial - where Wegener worked from 1998 until recently - also could be in legal hot water for failing to properly supervise Wegener during his employment with the company.

New England Financial is the parent company of New England Securities, both of which are owned by insurance giant Met Life. In May, New England Financial fired Wegener and apparently has been cooperating with authorities ever since.

On June 14, the Securities and Exchange Commission (SEC) confirmed that it was conducting an investigation of Wegener and had filed 15-page civil complaint against the broker. In the complaint, the SEC describes a three-year alleged fraud orchestrated by Wegener in which investors were conned through a Ponzi-like scheme.

According to the SEC, Wegener raised at least $6.5 million from investors who legitimately believed they were investing in stocks, mutual funds and Wegener's company, Wealth Resources.

As it turns out, the Wegener used investors' money for his own benefit. As reported June 18 by Wood 8 TV News, those “benefits” included:

At least $962,000 for his personal bank accounts.
More than $65,000 went to his ex-wife, before they divorced.
More than $1.5 million went to other companies as investments in Wegener's own name.
More than $1 million was used in Ponzi-like payments to clients who sought their investments back.

Maddox Hargett & Caruso P.C. is conducting its own investigation of Martin Wegener and New England Financial. If you suffered investment losses because of Wegener's alleged actions, securities fraud team. We can evaluate your situation to determine if you have a claim.