Paul Taboada— Alleged Misappropriation of Investor Funds and Securities

Rochester stockbroker fraud attorneyPaul E. Taboada Allegedly Misappropriated Investor Funds and Securities by Purportedly Failing to Return Excess Capital to Investors and by Failing to Distribute All of the Shares to Certain Investors in an IPO to which they were Entitled

Paul Taboada allegedly misappropriated investor funds and securities by failing to return excess capital to investors and by then purportedly failed to distribute all of the shares to certain investors regarding an IPO to which they were entitled, according to a Complaint from FINRA’s Department of Enforcement currently under review by attorneys Jason Kane and James Booker.

Peiffer Wolf Carr & Kane securities practice lawyers are investigating Paul Taboada’s alleged misappropriation of investor funds and securities.

Investors who believe they may have lost money in activity related to Paul Taboada alleged misappropriation of investor funds and securities are encouraged to contact attorneys Jason Kane or James Booker with any useful information or for a free, no obligation discussion about their options.

The aforementioned Complaint further reports that Taboada, specifically in March 2011, allegedly commenced a private offering of interests in a limited liability company, managed solely by Taboada, to purchase pre-IPO Facebook shares for investors, some of whom were customers of a broker-dealer owned by Taboada.

Taboada, as manager of said limited liability company, was allegedly solely responsible for allocating assets, liabilities, and Facebook shares among the investors, the Complaint states.

Furthermore, Taboada‘s broker-dealer allegedly acted as the placement agent and received placement fees and so-called “sales concessions” for sales of the interest, the Complaint notes. FINRA’s Extended Hearing Panel found that Taboada’s alleged mismanagement of the limited company and his actions in contravention of the offering documents, allegedly harmed investors, the Complaint reports.

Taboada‘s alleged faulty share allocation purportedly resulted in several investors receiving too low an amount of shares of Facebook, the Complaint notes.

Paul Taboada Barred by FINRA for Allegedly Misappropriating Misusing Customer Funds and Securities

Paul Taboada, by allegedly misappropriating investor funds and securities and by misusing customer funds and securities, allegedly broke FINRA Rules, and hence, has been barred by FINRA, the Complaint states.

In addition, FINRA is also ordering that Taboada pay $14,078.07 in hearing costs, and imposing appeal costs of $1,796.88.39, the Complaint notes.

Taboada, from October 2005 to September 2010, was registered with Charles Morgan Securities, Inc., and was purportedly the owner of Charles Morgan from May 2006 through February 9, 2012, the Complaint notes. Charles Morgan was allegedly majority owned by CMS Global Securities, Inc., which in turn was majority owned by Taboada, the Complaint reports.

Securities Lawyers Investigating

The Peiffer Wolf Carr & Kane securities lawyers often represent investors who lose money as a result of alleged investment fraud and are currently investigating Paul Taboada’s alleged misappropriation of investor funds and securities. 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 Taboada’s alleged misappropriation of investor funds and securities may contact the securities lawyers at Peiffer Wolf Carr & Kane, Jason Kane or James Booker, for a free no-obligation evaluation of their recovery options, at (585) 310-5140 or via e-mail at arosca@prwlegal.com or jbooker@prwlegal.com.

phil korosec (1250 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.