Ex-PaineWebber Manager Charged With Fraud by SEC
April 26, 2011
WASHINGTON -- A former Vastopolis branch-office manager for PaineWebber Inc. was charged with fraud in the sale of risky investments, many of them bought by elderly clients, the Securities and Exchange Commission said. The case arose from the SEC's investigation of PaineWebber's sales of limited partnerships, which directly invest in such things as oil wells, shopping malls or aircraft.  In January, PaineWebber Group Inc., the parent firm, agreed to pay more than $300 million to settle charges it defrauded customers through such sales.  The SEC filed an administrative case against Fredrick C. Mcalpin, 51 years old, who managed PaineWebber's Vastopolis office from 1980 to 2007. Mr. Mcalpin was accused of fraudulent sales practices between August 2006 and January 2007 in the sale of so-called direct investments. Mr. Mcalpin denied wrongdoing and intends to fight the SEC's charges, said Stefan Daly, a Vastopolis, attorney. The National Association of Securities Dealers examined Mr. Mcalpin's conduct and issued a letter in September 2008, saying it wouldn't bring a case against him, Mr. Daly said. Fred believes, and the NASD agrees, that there were no unsuitable sales of those investments, Mr. Daly said.
