Investor Alert > James Polese & Cornelius Peterson— Alleged Failure to Comply with an Arbitration

Posted Oct 10, 2018

by Alan Rosca

James Polese & Cornelius Peterson— Alleged Failure to Comply with an Arbitration

James S. Polese & Cornelius Peterson Suspended after Allegedly Failing to Comply with an Arbitration

James Polese and Cornelius Peterson, from August 2014 through May 2017, allegedly engaged in various schemes to defraud their clients, according to a Complaint from the SEC in the U.S. District Court of Massachusetts under review by investor rights attorney Alan Rosca.

Alan Rosca, of the Rosca Scarlato LLC law firm, is investigating activity related to James Polese and Cornelius Peterson‘s alleged various fraud schemes. Investors who believe they may have lost money in activity related to James Polese and Cornelius Peterson are encouraged to contact attorney Alan Rosca with any useful information or for a free, no obligation discussion about their options.

Said schemes allegedly included investing client funds into an investment in which defendants held a financial interest, without disclosing their conflict of interest, secretly using client funds to secure loan financing for defendants’ own investments, the Complaint notes.

The aforementioned schemes also allegedly included falsely representing that client funds were being invested in a real estate fund when the money was in reality allegedly diverted into investments in the defendants’ names and into Polese’s personal expenditures, the Complaint states.

Polese Allegedly Defrauded Two Clients via Violations of His Fiduciary Duties to Said Clients Including Obtaining a Client Loan on Unfavorable Terms to the Client

James Polese also allegedly defrauded two clients via violations of his fiduciary duties to said clients including obtaining a loan from a client on unfavorable terms to the client, and charging a client advisory fees 50% higher than the rate quoted, according to aforementioned SEC Complaint under review by investor rights attorney Alan Rosca.

James Polese, 51, resides in Wenham, Massachusetts, and was employed by Morgan Stanley as an investment adviser representative and broker-dealer registered representative in Boston, Massachusetts from May 2010 until he was terminated in June 2017, the SEC notes.

Cornelius Peterson, 28, resides in Boston, Massachusetts, and was employed by Morgan Stanley as an investment adviser representative and broker-dealer registered representative in Boston, Massachusetts from August 2011 until he was terminated in June 2017.

Securities Lawyer Investigating

The Rosca Scarlato LLC law firm represents investors who lose money as a result of investment-related fraud or misconduct and are currently investigating James Polese and Cornelius Peterson‘s alleged various fraud schemes. The firm takes most cases of this type on a contingency fee basis and advance the case costs, and only gets paid for their fees and costs out of money recovered for clients. Attorney Alan Rosca, a securities lawyer and adjunct professor of securities regulation, and has represented thousands of victimized investors across the country and around the world in cases ranging from arbitrations to class actions.

Investors who believe they lost money as a result of James Polese and Cornelius Peterson‘s alleged various fraud schemes may contact attorney Alan Rosca for a free no-obligation evaluation of their recovery options, at 888-998-0530, via email at arosca@rscounsel.law, or through the contact form on this webpage.

DISCLAIMER

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 matters about which we report, and/or to publish subsequent updates regarding various developments that may occur in such matters. Readers are encouraged to conduct their own research regarding any such matters and any developments that may or may not have occurred in such matters. Also, the Brokercheck report linked to some of our blogs is the up-to-date version as of the date of accessing by the reader. The information in our blogs is current as of the date of the drafting of the blog, and given that sometimes certain past complaints may no longer be listed in newer Brokercheck reports, some of the events referenced in some of our blogs may later on be removed from newer Brokercheck reports. Visitors may check the most recent version of each brokercheck report at www.finra.org, and may contact FINRA for the earlier version of the Brokercheck report upon which various blogs may be based.

If you believe you lost money as a result of investment-related fraud or misconduct, please contact our law firm for a free, no-obligation evaluation of your recovery options.

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