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The man allegedly used investor funds on shopping, travel, dining, and a soccer academy in Arizona.
A former hotel banquet worker allegedly swindled over $700,000 from his coworkers in a bogus investment scheme, using their funds as his own personal “piggy bank.”
Secretary of the Commonwealth William Galvin charged David Markiewicz of Hull with securities fraud for running the years-long investment scheme, his office announced Tuesday. Markiewicz allegedly formed a fake investment company to raise money, and then issued phony earnings reports to hide losses and spent investors’ funds on personal expenses.
According to an administrative complaint filed by Galvin’s Securities Division, Markiewicz preyed on his former coworkers, offering a “get rich quick options and securities program” at a Boston hotel during lockdown from the pandemic’s peak.
Over eight years, 12 Massachusetts investors lost more than $700,000 due to Markiewicz’s poor trading performance and use of investor funds, according to the complaint.
The complaint says that in 2017, Markiewicz created Nantasket Trading, LLC, which he used to give the scheme “the air of legitimacy” and show investors that he managed the funds through a pooled investment fund at the company.
Markiewicz, however, has never registered to sell or trade securities in the state, Galvin’s office said. Instead, he allegedly deposited the funds into his personal bank account and traded futures and options contracts through his brokerage account.
The complaint says he transferred only a portion of the funds into his brokerage account and used the remainder of the investor funds for shopping, travel, dining, and a soccer academy in Arizona.
Markiewicz allegedly provided investors false earnings statements showing significant growth to cover up the scheme. According to the complaint, even after losing nearly all the funds, he continued to solicit additional investments, telling the investors the time to invest “couldn’t be more advantageous.”
The Securities Division is seeking an order requiring Markiewicz and Nantasket Trading, LLC, to “disgorge all ill-gotten gains” in connection with the fraudulent scheme, provide restitution with interest to investors, be barred from registering in the securities industry in Massachusetts, and pay an administrative fine.
The secretary of the commonwealth is the state’s chief securities regulator. The division’s complaints are heard in an administrative forum by a hearing officer.
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