What You Need to Know
- The former Capitol Securities Management broker was barred from the industry by FINRA in 2010.
- He allegedly ran a nationwide investment fraud scheme that resulted in more than $25 million in losses to over 300 victims, most of whom were elderly.
- One week ago, his attorney was sentenced to 10 years for his role in the same scheme.
A former Capitol Securities Management broker was sentenced Monday to 35 years in prison for his role in a nationwide investment fraud scheme that resulted in more than $25 million in losses to over 300 victims, most of whom were older adults, according to court documents and Raj Parekh, acting U.S. Attorney for the Eastern District of Virginia.
The ex-rep’s Williamsburg, Virginia-based attorney was sentenced last week to 10 years in prison for his role in the same scam, after being convicted on multiple charges of conspiracy, mail fraud and sale of unregistered securities, Parekh pointed out.
Daryl Bank, 51, of Port St. Lucie, Florida, ran an investment fraud scheme from about January 2012 through July 2017, based in the Tidewater area of Virginia and Port St. Lucie, and operating across the country, according to court documents.
Bank was a broker at Capitol Securities Management from January 2008 until February 2010, when he was barred from the securities industry by the Financial Industry Regulatory Authority, according to his report on FINRA’s BrokerCheck website.
Capitol Securities Management did not immediately respond to a request for comment about Bank’s sentencing on Friday.
In 2015, Bank and several of his entities were named by the Securities and Exchange Commission as fundraising entities that were involved with defrauding investors in an alleged scheme that raised more than $12.4 million from investors involving applications to the Federal Communications Commission for cellular spectrum licenses.
Barred by FINRA
Bank and an accomplice allegedly misappropriated about $161,000 in commissions and other payments belong to his member firm for their own personal use, according to a disclosure on his BrokerCheck report.
Bank then entered false information concerning securities transactions on the business records of his firm, “willfully causing” the firm to maintain inaccurate books and records, the disclosure said.
When FINRA investigated, Bank allegedly provided false information in response to requests for information and provided false and misleading testimony under oath during a FINRA on-the-record interview.