Paul E. Taboada—Misappropriation of Investor Funds and Securities

Paul E. Taboada Allegedly Misappropriated Investor Funds and Securities, Misused Customer Funds and Securities, Provided False and Misleading Information

Paul E. Taboada, who formerly owned Charles Morgan Securities from May 2006 through February 9, 2012, allegedly engaged in serious violations of FINRA Rules, according to a four count Complaint from FINRA’s Department of Enforcement currently under review by attorneys Alan Rosca and Joe Peiffer.

Taboada, for starters, allegedly misappropriated investor funds and securities, specifically, allegedly using funds belonging to certain investors to pay expenses owed by other investors and by distributing too many Facebook shares to some investors and too few shares to other investors, in violation of FINRA Rules, the Complaint notes.

The Peiffer Rosca Wolf securities lawyers are presently conducting an investigation into Paul E. Taboada’s alleged misappropriation of investor funds and securities.

Paul E. Taboada’s Investors Allegedly Included Customers of Taboada’s Broker-dealer, Charles Morgan Securities, Inc., and Blackwall Capital Markets;  Barred and Ordered by FINRA to Pay the Costs of the Proceeding for Misappropriating Investor Funds and Securities

Taboada’s misappropriation of investor funds and securities also violated FINRA Rules as some of the investors were customers of Taboada’s broker-dealer, Charles Morgan Securities, Inc., and Blackwall Capital Markets, another broker-dealer that Taboada associated with after his firm ceased operations, according to the aforementioned Complaint presently under review by attorneys Alan Rosca and Joe Peiffer.

What is more, Taboada allegedly created CMS FB LLC in order to pool investor funds and purchase Facebook, Inc. shares in advance of its initial public offering, the Complaint also reports.

Finally, when CMS purchased Facebook securities, it made either direct purchases from a shareholder or indirect purchases from an entity affiliated with Felix Investments, LLC, the Complaint notes.

Securities Lawyers Investigating

The Peiffer Rosca Wolf securities lawyers often represent investors who lose money as a result of misappropriation of investor funds and are currently investigating Paul E. Taboada’s alleged misappropriation of investor funds. 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 Paul E. Taboada’s alleged misappropriation of investor funds may contact the securities lawyers at Peiffer Rosca Wolf, Alan Rosca or Joe Peiffer, for a free no-obligation evaluation of their recovery options, at 888-998-0520.

Alan Rosca (1144 Posts)

Alan is a securities lawyer. He also teaches Securities Regulation at the Cleveland-Marshall College of Law. He focuses his legal practice on complex commercial and financial litigation and arbitration, particularly in the areas of securities and investment fraud. His office is in Cleveland, Ohio.


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.