Michael Donnelly, Owner of Coastal Investment Advisors, Charged in Fraud

Michael Donnelly charged in $2 Million Dollar Investment Fraud

Michael Donnelly, the former president of Wilmington, Del.-based Coastal Investment Advisors Inc. and its affiliated broker-dealer, allegedly engaged in a nearly $2 million fraud scheme.

According to SEC documents currently under review by Peiffer Wolf attorney Jason Kane, Donnelly allegedly provided investors with false account statements, trade confirmations, and other fraudulent information in an attempt to demonstrate investment holdings.

Donnelly’s false information allegedly purported to reflect that fictitious “investments” were performing well. U.S. Attorney’s Office for the Eastern District of Pennsylvania announced on October 19, 2015 that criminal charges were filed against Michael Donnelly relating to his alleged activities.

Michael Donnelly settled SEC charges

Michael Donnelly agreed to settle the SEC’s charges and negotiated a final judgment that permanently prevents him from engaging in future violations of the antifraud provisions of the federal securities laws.

Michael Donnelly also consented to an SEC order permanently barring him from the securities industry. Donnelly further agreed to surrender his ill-gotten gains of $1.9 million and additional prejudgment interest of $365,723.

Investor Rights Lawyers Investigating

The Peiffer Wolf investor rights attorneys often represent investors who lose money as a result of alleged investment schemes. They are currently investigating Michael Donnelly. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.

Investors who believe they lost money as a result of Michael Donnelly allegedly operating a fraudulent investment scheme may contact the investor rights attorneys at Peiffer Wolf, Jason Kane or Joe Peiffer, for a free no-obligation evaluation of their recovery options, at 585-310-5140.

Broker: Michael Donnelly
Status: INVESTIGATED by Peiffer Wolf.

For brokercheck report and additional info click here!

Peiffer Wolf (1316 Posts)

In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow cases about which we report, and/or to publish subsequent blogs regarding various developments that may occur in such cases. Readers are encouraged to conduct their own research regarding any such cases and any developments that may or may not have occurred in such cases.