The Financial Industry Regulatory Authority (FINRA) filed a complaint against former Workman Securities Corp. general securities representative Attila Gyula Toth for allegedly soliciting and misusing customer funds and subsequently providing false testimony and information to both a state securities regulator and to Workman during the firm's internal investigation.
The complaint alleges that prior in 2008 and while associated with CapWest Securities, Inc., Toth solicited an investment of $70,000, describing it as a short-term loan to a California-based construction company which Toth claimed was owned by a personal friend. In exchange for the loan, Toth allegedly promised a full repayment of principal plus a high rate of interest.
The complaint states that the affected customer took a premature $70,000 distribution from his 403(b) retirement account, with Toth receiving the balance of $52,500 after 25% was withheld for taxes. Toth had told the customer taxes would not be withheld.
The Department of Enforcement claims that Toth kept the funds in a personal bank account and did not invest in the construction company or any other investment opportunity.
Between 2008 and 2009, after Toth had moved from CapWest to Workman, the affected customer inquired multiple times about the purported $52,500 investment, continually being told by Toth that repayment was forthcoming before Toth informed the customer of insufficient funds with which to repay him and requesting to be relieved of the obligation to pay the withheld taxes Toth originally had agreed to repay.
The complaint continues, alleging that in 2009, Toth borrowed $30,000 from a different Workman customer, in violation of firm procedures and policies. Despite an alleged promissory note signed by Toth and a corresponding deed of trust recorded with Maricopa County, Arizona, Toth allegedly and under oath, provided false testimony to a state securities regulator for the question, "Have you ever requested a loan from [the Workman customer]?"
Similarly, Toth is alleged to have lied to Workman in a subsequent e-mail with Workman's Chief Compliance Officer, Toth allegedly stating, "No, I never took, borrowed or asked for funds from a client."
Toth is also accused of failing to respond to FINRA's request for information related to this investigation. As of the date of this posting, the complaint, filed by FINRA, has not been adjudicated otherwise resolved.
If you have invested or lent money to Attila Gyula Toth, or have loaned funds to any broker, representative or financial advisor, outside the scope of a FINRA-member firm or in violation of firm policies, and this activity has proven harmful to your investments or interests, please call The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for an investigation and consultation.