Former Broker John Brady Guyette Convicted on 15 Securities Fraud Felony Counts

Attorney Advising Disclaimer

Former Community Bankers Securities, LLC Senior Vice President and stock broker John Brady Guyette was found guilty of felony securities fraud after advising customers to invest in Anaheim, California-based Medical Capital Holdings, Inc. ("MedCap") even though the investments had already been severely "underperforming" before he made the recommendations, leading to over $1 million in losses.

The Weld County District Attorney's office believes that MedCap allegedly operated as a Ponzi scheme and that Guyette, in selling MedCap notes to investors after MedCap began experiencing financial troubles, exacerbated the misconduct to fraudulent levels when he began making untrue statements and omissions to his customers.

According to prosecutors, Guyette sold MedCap private placements to multiple investors with whom he did not have a prior investing relationship in violation of federal securities law.

Prosecutors say Guyette also deliberately "withheld that information with his investors," misconduct which allowed the losses to accumulate.

In June 2012, FINRA fined Guyette $86,140 and suspended him for one year for failure to conduct adequate due diligence relating to the MedCap investment, leading to the assumption of substantial risk amongst his clientele.

In its decision to sanction Guyette, FINRA stated that Guyette's characterization of MedCap as "a very safe investment" was inaccurate.

According to the Weld County District Court, that characterization—along with his other fraudulent actions—was also criminal.

If you have invested with John Brady Guyette or with any firm or broker whose failure to conduct adequate due diligence, unsuitable, improper or inappropriate recommendations or solicitations to invest in a Ponzi Scheme or similarly illicit offering 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.

News: Greeley stockbroker convicted of securities fraud (Reporter-Herald)

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