Lehman Brothers: Overview

Modified on 2009/10/14 21:32 by admin
A Lehman Brothers stockbroker is at the center of a Federal inquiry after authorities with the Federal Bureau of Investigation (FBI) received a self-written letter describing how he cheated his clients out of millions of dollars. The broker, Frank Gruttadauria, admitted to stealing from client funds and falsifying account statements. Gruttadauria has been missing since January 11, 2002. Authorities fear the written confession may have been a suicide note.

The Securities and Exchange Commission (SEC) and the National Association of Securities Dealers (NASD) are assisting in the investigation. A spokesperson for Lehman Brothers says Gruttadauria, 55, may have stolen over $25 million since joining the firm in October 2000. According to Lehman Brothers, he had over 300 clients, dozens of whom may have been cheated out of assets. Authorities are also investigating whether Gruttadauria misappropriated funds prior to his employment at Lehman Brothers. Records indicate that Gruttadauria first became a stockbroker in 1987. Gruttadauria faces security violation charges ranging from negligence to breach of fiduciary duty.

If you are a victim of Mr. Gruttadauria's alleged fraud, it may be important to contact an attorney who can help you protect your legal rights. Please keep in mind that there may be time limits within which you must commence suit.

See Also

  1. Securities & Investment Fraud
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