Case 7:19-cv-01817-VB Document 1 Filed 02/26/19 Page 1 of 33

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK
ROBERT JAMIESON, JUDITH JAMIESON,
ROBERT JAMIESON AS TRUSTEE FOR THE
RAYMOND DAVID JAMIESON IRREVOCABLE
Case No. 19 Civ. ____
ïèïé
JAMIESON AS TRUSTEE FOR THE JAMIESON
FAMILY FOUNDATION,
Plaintiffs,
COMPLAINT
-againstJURY TRIAL DEMANDED
SECURITIES AMERICA, INC.,
SECURITIES AMERICA ADVISORS, INC.,
HECTOR A. MAY, VANIA MAY BELL, and
EXECUTIVE COMPENSATION PLANNERS, INC.,
Defendants.

Plaintiffs Robert Jamieson, Judith Jamieson, Robert Jamieson as Trustee for the
, and Judith Jamieson as Trustee for

counsel, as and for their complaint against Defendants Securities America Inc., Securities
America Advisors, Inc., (together

Hector A. May, Vania May Bell, and
and

, allege as

follows:
INTRODUCTION
1.

This action arises from the intentional misrepresentations, theft, and breaches of

duty by Defendants

financial advisors in whom the Jamieson Family placed their complete

faith and trust that caused the Jamieson Family to lose in excess of $18 million.

 Case 7:19-cv-01817-VB Document 1 Filed 02/26/19 Page 2 of 33

2.

Beginning in 2001, defendants Hector A.

and Vania May Bell

embarked on a scheme to deceive and defraud the Jamieson Family in connection with
securities accounts maintained by the Jamieson Family at Securities America. Over the next 17
years, May, with the assistance of Bell, stole millions from the Jamieson Family and repeatedly
provided investment advice designed to make it easier for him to steal more.
3.

The only reason May and Bell were able to perpetrate a fraud that was

breathtaking in both scope (the Jamieson Family was not the only victim) and duration was the
abject failure of Securities America to perform its duties. As both a broker-dealer and investment
adviser registered with the Securities and Exchange Commission, Securities America was
obligated

es brokerage and investment advisory activities as well as

his outside business activities. Not only did Securities America fail to invest the time and money
necessary to properly supervise May, but Securities America ignored stark red flags that were
identified by its own compliance department and would have exposed the scheme in 2003, at a
.
4.

During the approximately 17 years that Securities America intentionally or

recklessly and continuously ignored its regulatory obligations, upon information and belief,
Securities America reaped over

brokerage and investment

advisory clients, including over $500,000 from the Jamieson Family.
5.

If Securities America had performed its duties, the Jamieson Family would still

have its life savings and would not have experienced the financial devastation and emotional
trauma caused by learning in March 2018 that, while pretending to be a trusted family

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6.

This lawsuit is brought to hold May, Bell, and Securities America fully

accountable for the losses suffered by the Jamieson Family, which are estimated to exceed $18
million.
7.

In addition to compensatory damages, the willful or willfully blind misconduct of

all Defendants justifies a substantial award of punitive damages. It is only through a substantial
award of punitive damages that Securities America a documented failure-to-supervise
recidivist

will be sufficiently motivated to redesign its compliance systems, invest the

resources necessary to supervise its registered investment advisor representatives in an effective
way, and protect its customers against a recurrence of the type of fraud perpetrated by May and
Bell. Anything less will only encourage Securities America to, once again, cynically treat
and leave the
investing public vulnerable to the same type of financial devastation experienced by the
Jamieson Family.
JURISDICTION AND VENUE
8.

This Court has subject matter jurisdiction pursuant to 28 U.S.C. 1332 because

there is complete diversity between Plaintiffs and Defendants.
9.

This Court also has subject matter jurisdiction pursuant to 28 U.S.C. 1331

because this case involves a federal question.
10.

Venue is proper in this Court because May, Bell and ECP engaged in the

underlying conduct in Rockland County, New York.

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THE PARTIES
11.

Plaintiff Robert Jamieson is a citizen of the United States and a resident of

Connecticut. He also serves as the trustee for the Raymond David Jamieson Irrevocable

12.

Plaintiff Judith Jamieson is a citizen of the United States and a resident of

Connecticut. She also serves as the trustee for the Jamieson Family Foundation.
13.

Defendant Securities America, Inc. is a corporation organized under the laws of

Delaware with its home office located in La Vista, Nebraska. Securities America, Inc. is also
registered with the Securities and Exchange Commission as a broker-dealer and is a member of
.
14.

Defendant Securities America Advisors, Inc. is a corporation organized under the

laws of Nebraska with its principal place of business in La Vista, Nebraska. Securities America
Advisors, Inc. is registered with the Securities and Exchange Commission as an investment
adviser.
15.

Defendant Hector May is a citizen of the United States and a resident of the State

of New York.
16.

Defendant Vania May Bell is a citizen of the United States and a resident of the

State of New Jersey.
17.

Defendant Executive Compensation Planners, Inc. is a corporation organized

under the laws of New York with its principal place of business in New City, New York.

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FACTS
A.

The Jamieson Family
18.

Plaintiff Robert Jamieson was born in Paterson, New Jersey in 1945. He received

a B.A. from Babson College in 1968, becoming the first in his family to graduate from college.
19.

Robert Jamieson was determined to become part of the music industry and, rather

than pursuing other opportunities available to college graduates in the late-1960s, Mr. Jamieson
took a warehouse job in Queens, New York, where he counted LP records on a production line.
He then successfully applied for a position in CBS Records management training program.
20.

Plaintiff Judith Jamieson was born in 1949 and grew up in Detroit, Michigan. Her

father died when she was three years old, and she was raised by her mother, who worked at the
Student Union of Mercy Catholic College. Judith graduated from Immaculata Catholic High
School, attended secretarial school, and worked as a secretary for General Motors for two years
before meeting Robert Jamieson.
21.

Judith and Robert Jamieson married in 1970.

22.

From 1970 to the mid-1990s, Robert Jamieson worked his way up the ranks of the

music industry, taking executive positions at CBS Records, Polygram and BMG. To pursue those
promotions, Robert and Judith Jamieson moved frequently while raising a family of three
children: Cynthia, David and Byron.
23.

During his career, Mr. Jamieson was instrumental in developing and signing

numerous global music industry superstars, including Bon Jovi, Dave Matthews, Christina
and David Grey.

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24.

In 1997, Robert Jamieson became Chairman and Chief Executive Officer of RCA

Music Group.
Business School case study.
B.

The Jamieson Family Opens Accounts at Securities America
25.

By 1998 the Jamieson Family had accumulated significant savings.

26.

Although Robert Jamieson had achieved success in the music industry, neither he

nor Judith Jamieson had any expertise, education or training in finance or investments.
27.

The Jamieson Family decided to hire a personal financial advisor and consulted
a recommendation.

28.

Raymond Jamieson had grown up during the Great Depression and had taught his

son to be cautious about investment decisions. After working as a golf pro for 25 years at
Rockland County Country Club, Raymond Jamieson had hired Hector May, a member of the
country club, as his financial advisor.

Raymond Jamieson set up a trust for the

benefit of his grandchildren, Cynthia, David and Byron Jamieson

29.

the Raymond David

When Robert Jamieson asked his father for advice concerning the selection of a

financial advisor, Raymond Jamieson recommended May.
30.

Robert Jamieson met with May and was encouraged to learn that May worked

under the supervision of an established national securities firm, Securities America.
31.

The Jamieson Family hired May and, in 1999, opened its first two brokerage

accounts at Securities America. On each of the account opening documents, May was listed as
the

registered representative at Securities America.

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C.

May Convinces the Jamieson Family to Place Their
Complete Faith and Trust in May and Securities America
32.

During the years that followed, May used his prior relationship with Raymond

Jamieson to insinuate himself into the Jamieson Family and to convince the Jamiesons to place
their complete faith and trust in May and Securities America.
33.

May persuaded the Jamiesons he was acting in their best interests by pretending

to act, not just as their trusted financial advisor, but as their close friend. May and his wife
regularly attended social events with the Jamieson Family. For example, over the course of their
20-year relationship, May attended the weddings and college graduations of Cynthia, David and
Byron Jamieson.
34.

Later in their relationship, in or about 2015, Robert Jamieson suffered a severe,

hemorrhagic stroke that left him disabled and hospitalized for more than one year. May visited
Robert Jamieson at the hospital and assured Judith Jamieson that she should focus all her energy

ests.
35.

May also used his association with Securities America to encourage the Jamieson

36.

On numerous occasions May communicated to the Jamieson Family that he

participated in regular calls with the sales and research departments of Securities America so he
could provide the best possible investment advice to the Jamieson Family.
37.

May also explained to the Jamieson Family that Securities America conducted
k as just one part of

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38.

May convinced Robert and Judith Jamieson they could rely on the integrity of

May and Securities America to protect
39.
D.

life savings.

This would prove to be a devastating lie.

Robert Jamieson Retires and Receives a Substantial Severance Payment
40.

In or about 2004, Robert Jamieson and BMG entered into a confidential

agreement pursuant to which Robert Jamieson

Chief Executive Officer of

BMG North America terminated. In connection with the agreement, Robert Jamieson received a
substantial payment
41.

At the time that Robert Jamieson left BMG, it was uncertain whether, at age 59,

Robert Jamieson would be able to obtain another senior executive position in the music industry.
As a result, the Jamieson Family understood and communicated to May and Securities America
that the Settlement Funds, together with their existing savings at Securities America, might serve
as the principal source of income for Robert and Judith Jamieson for the rest of their lives.
42.

Faced with the critical decision concerning how to invest the Settlement Funds,

the Jamieson Family sought and obtained advice from May and Securities America. In these
communications, May instructed the Jamiesons to prepare a monthly budget that would include
all possible expenses, including education expenses for their children.
43.

At that point in time, the Jamieson Family owned a large home in Connecticut

and a two-bedroom apartment in New York, both of which gave rise to substantial maintenance
and real estate tax expenses. In addition, two of their three children had not yet completed their
college and graduate school education.
44.

and wanting to make sure the Settlement Funds

would be invested in a manner that protected

long-term financial security, Robert

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Jamieson submitted to May and Securities America a budget that indicated the Jamieson Family
would need monthly cash flow to cover its expenses.
45.

The Jamieson Family then deposited the entirety of the Settlement Funds into

brokerage accounts at Securities America.
46.

Rather than investing the Settlement Funds into a diversified portfolio tailored to

meet the financial needs of the Jamieson Family, the Defendants
assets in a way that was designed primarily
E.

fraudulent scheme.

to Defraud the Jamieson Family
47.

Beginning in 2001, shortly after death of Raymond Jamieson, May and Bell

48.

May implemented this scheme in two primary ways.

49.

First, over the course of their relationship, May advised the Jamieson Family to

open approximately 20 different brokerage accounts at Securities America. These included
multiple individual accounts in the name of Robert Jamieson and Judith Jamieson, at least five
separate joint accounts in the name of Robert and Judith Jamieson, four retirement accounts, and
separate brokerage accounts for a charitable foundation called the Jamieson Family Foundation
.
50.

Upon information and belief, May opened these accounts to make it more difficult

for the Jamiesons to keep track of their assets so that May and Bell could steal the Jamieson
money without detection by the Jamieson Family.
51.

Second, May advised the Jamieson Family to invest its assets primarily in

municipal bonds. May then regularly directed Robert and Judith Jamieson to wire funds from
their personal joint bank account at US Trust to an account at JP Morgan Chase entitled

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May represented to the Jamieson Family that he needed these funds to purchase new municipal
bonds for the Jamieson Family in its multiple Securities America brokerage accounts. At all
times, Bell assisted May and actively participated in issuing instructions to the Jamieson Family
to send monie
52.

In truth, there

Instead, the bank account to which

May directed the wire transfers from the Jamieson Family was simply a bank account held in the
name of ECP,
53.

own company, which he used to steal
Bell, in her role as controller of ECP, managed the ECP bank accounts, oversaw
ed funds
, and recorded transactions into a bookkeeping program. In that

bookkeeping program, Bell falsely described the funds stolen from the Jamieson Family as

or ECP.
54.

From 1998 through 2015,

the Jamieson Family deposited

more than $15 million into the approximately 20 different brokerage accounts set up by May for
the Jamieson Family at Securities America.
55.

To cover up his thefts of these funds, May and Bell regularly prepared and sent

false account statements to the Jamieson Family that overstated the account balances at
Securities America.
F.

May Provided Investment Advice Designed
to Cover Up His Fraud and Increase His Fees
56.

May

In addition to having its funds stolen, the Jamieson Family suffered damages from
designed
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generate income, but to cover up his fraudulent scheme and maximize

and Securities

fees.
57.

As discussed above, May advised the Jamieson Family to focus its investment

strategy on municipal bonds. Upon information and belief, this strategy allowed May to falsely
claim on a regularly basis that bonds were maturing and to direct the Jamieson Family to transfer
funds to a custodial account to purchase new bonds. In reality, the transfers were made to

58.

In addition, May encouraged the Jamieson Family to make high-risk investments

outside of Securities America
real estate investment venture in New Canaan, Connecticut. May himself handled the accounting
for the New Canaan venture and exaggerated its losses in communications to the Jamieson
Family. May then attributed the reduced principal balances of the accounts at Securities
America, which were reported by May to the Jamieson Family, to losses suffered from these
high-

theft.
59.

May also repeatedly advised the Jamieson Family against selling any securities or

funds from those accounts. From 2016 to 2017, May advised Judith Jamieson to borrow against a
home equity line of credit to pay living expenses rather than sell any securities in the Jamieson
Family accounts at Securities America. By early 2018, the loan balance on the home equity line
of credit had grown to approximately $350,000. In February 2018, May advised Judith Jamieson
Selling and getting out of the
market is not the thing to do

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60.

Upon information and belief, May advised the Jamieson Family against selling

securities in order to prevent the Jamiesons from learning that the value of their brokerage
accounts at Securities America, by the end of 2017, had dropped to approximately $50,000.
61.

Finally, May advised the Jamieson Family to purchase unsuitable financial

products that, upon information and belief, allowed May and Securities America to collect high
commissions and made it easier for May to liquidate the products to steal the
money.
62.

For example, in 2005, May caused the Jamieson Family to invest $2.3 million in

long-term annuities issued by Allianz Life Insurance Company

. Upon

information and belief, the Allianz Annuities generated substantial commissions for May and
Securities America and were not designed to meet the financial goals of the Jamieson Family.
63.

Worse yet, beginning in May 2007, May caused the Jamieson Family to surrender

the Allianz Annuities, thereby depriving the Jamieson Family of the potential income stream
from the annuity products and forcing the Jamieson Family to suffer more than $100,000 in
unnecessary penalties and losses. Upon information and belief, May caused the Jamieson Family
to surrender the Allianz Annuities so he could steal the proceeds through the fraudulent
municipal bond scheme described above.
G.
64.

On its public website, Securities America represents that it understands that
tools needed to
claims

that it
practice by providing exceptional financial

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According to Securities America, the relationship between Securities America and

65.

In or about November 2010, the Jamieson Family executed an agreement with

Securities America, May and ECP.
66.

The agreement

s with

Securities America and, upon information and belief, replaced similar agreements the Jamieson
Family had executed in the past.
67.

In that November 2010 agreement, although Securities America attempts to
,

Securities America acknowledges it may be subject to liability
Securities America or its representatives, agents
or affiliates
68.

Securities America further acknowledges that nothing in the agreement is

intended to waive any right of action the Jamieson Family may have in the event Securities
Americ
H.

The Direct Responsibility of Securities America for the Success o
69.

Over the course of

-year relationship with May and

Securities America, Securities America
acted and failed to act
70.

repeatedly

in ways that helped May perpetrate the scheme.

Most outrageously, on May 5, 2003, a representative of Securities America

compliance department
three large withdrawals, totaling $350,000, from a brokerage account of the Jamieson Family

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that occurred between January and April 2003, and (b) the sale of a mutual fund that created a
deferred sales charge of nearly $4,000 because the fund had been held for a short period.
71.
Team, my r
Compliance sent the email to hectormay@usa.net, a non-Securities America email address used
by May to conduct his securities and investm

72.

In a letter dated May 14, 2003, May claimed

May also claimed that the Ja
The May 14 letter sent by May noted
that, at that time, he was both a registered representative and a registered principal of Securities
America.
73.
Jamieson had expressed (or could have expressed) an informed opinion concerning the
investment quality of the MFS Limited Maturity Class B mutual fund, a short-term, conservative
bond fund.
74.

In fact, the $350,000 in withdrawals identified by SA Compliance in May 2003

represented thefts by May from the Jamieson Family brokerage accounts via the fraudulent
municipal bond scheme described above.
75.

Upon information and belief, SA Compliance did not make any further inquiries

concerning either the $350,000 in withdrawals or the self-serving sale of the MFS Limited

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Maturity Class B fund, which caused the Jamieson Family to incur unnecessary additional sales
charges for May and Securities America
76.

Upon information and belief, SA Compliance made no attempt to communicate

directly with the Jamieson Family concerning the early 2003 withdrawals or the sale of the
mutual fund.
77.

Had SA Compliance taken any additional steps to investigate the false

representations in

letter, the Jamieson Family would have avoided the financial

devastation they subsequently suffered.
78.

From 2004 through at least 2015, Securities America failed to investigate many
For example, in 2005, May sold an annuity issued by Integrity Life Insurance
s

Trust and purchased an annuity issued by Allianz Life Insurance Company, which then had a
value as of December 31, 2005 of $381,108.
79.

Upon information and belief, the sole purpose of this senseless switch from one

annuity provider to another was to generate commission income for May and Securities America.
Upon information and belief, SA Compliance failed to investigate this improper transaction and
failed to discuss it with the Jamieson Family to ensure it was authorized.
80.

From 2004 through at least 2015, SA Compliance also failed to monitor

communications between May and the Jamieson Family. For example, May used the USA.net
Email Account the same account SA Compliance used to communicate with May

to instruct

the Jamieson Family to wire funds to the non81.

Upon information and belief, SA Compliance conducted periodic inspections of

the branch office where May served as both principal and registered representative of Securities

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America. Had SA Compliance conducted these inspections in a reasonably competent manner, it
would have discovered the false account statements May prepared and sent to the Jamieson
Family.
82.

Securities America itself also regularly sent the Jamieson Family correspondence

that falsely indicated the Jamieson Family continued to hold as much as $25 million in the
brokerage accounts at Securities America. For example, in September 2017,
Securities America sent a letter to the Jamieson Family enclosing
$25

we have on
in assets,

, and that none
America.
83.

Even worse, in November 2018 more than nine months after Securities America
een exposed as a direct result of actions

taken by the Jamieson Family Securities America sent another letter to the Jamieson Family to
confirm certain financial information. According to that letter, the books and records of
Securities America showed that

had $10 million in assets

and annual income of $750,000.
84.

Securities America knew or was reckless in not knowing that this information was

85.

Upon information and belief, May obtained millions in fees and stolen funds from

false.

the Jamieson Family.
86.

Upon information and belief, Securities America collected over $500,000 in fees

from the Jamieson Family.

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87.

When the Jamieson Family

purchase expensive

insurance products and invest in high-risk ventures, like the

or the Connecticut

real estate venture, the Jamieson Family reasonably relied on the false representations May and
Securities America made concerning the value of the holdings in their brokerage accounts.
88.

If Securities America had communicated only accurate information concerning
holdings or if Securities America had performed its supervisory activities

in a minimally competent manner and acted upon any of the multiple

, May would

have been stopped in his tracks no later than May 2003, and the Jamieson Family and
numerous other customers of Securities America

would still have their life savings.

I.
89.

In the fall of 2017, Judith Jamieson began discussing with May the possibility of

moving

Securities America to another brokerage firm. Judith

Jamieson told May, naively, that while she appreciated everything May had done for the
Jamieson Family, she was concerned that May was likely to retire soon.
90.

May, who had stolen millions from the Jamieson Family and had been sending

false account statements, dissuaded Judith Jamieson from taking any action for several months.
91.

At the end of February 2018, Judith Jamieson decided to

pleas

and arranged for another brokerage firm to initiate a transfer of the Securities America accounts.
92.

Upon completing the process, the new brokerage firm informed Judith Jamieson

that the accounts held little to no assets.
93.

Judith Jamieson attempted to contact May, naively assuming that an

administrative error had occurred.

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94.

May informed Judith Jamieson that he could not provide any information to her.

When she asked why, May referred Judith Jamieson to his criminal defense attorney.
95.

It was only then that the Jamieson Family discovered that May had stolen millions

of dollars from the Jamieson Family and drained the Securities America accounts.
96.

This revelation has caused both financial and emotional devastation. All the

members of the Jamieson Family Robert, Judith, Cynthia, David and Byron

have attempted

and failed to make sense of the fact that they were victims of a 17-year scam perpetrated by a
trusted family friend and enabled by an established national financial firm.
97.

In the immediate aftermath of this discovery, the Jamieson Family sold certain

items, including furniture, and borrowed additional monies from its home equity line of credit to
.
98.

Robert and Judith Jamieson have since sold their home in Connecticut and their

apartment in New York to raise new funds and reduce their living expenses.
99.

At a time in their lives when they hoped to enjoy the fruits of their hard work and

to

his stroke, Robert and Judith Jamieson

are, instead, figuring out how to restructure their lives to make ends meet.
100.

The Jamieson Family also continues to search for answers to the fundamental
ions raised by the events described in this complaint: why did May betray the

Jamieson Family for so much money; why did Securities America enable May for so long; why
detect the scheme; and w
Jamieson Family in response to the many red flags.
101.

The Jamieson Family brings this action both to recover its financial losses and to

seek answers to these questions.

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FIRST CLAIM FOR RELIEF:
SECURITIES FRAUD
(Violations of Section 10(b) of the Exchange Act
and Rule 10b-5 Promulgated Thereunder, 15 U.S.C. §78j(b))

(Against All Defendants)
102.

Plaintiffs repeat and reallege each and every allegation contained in paragraphs 1

through 101 as if fully set forth herein.
103.

May, Bell and ECP made material misrepresentations and omitted material facts

in connection with purchases and sales of securities by the Jamieson Family.
104.

For example, May made the following false statements:
a.

In an email dated July 15, 2014, May falsely told Robert Jamieson he

intended to renew a $75,000 bond at a higher rate and directed the Jamieson Family to
May had
no intention of renewing any bond, and the bank account that received the wire was not
set up for the benefit of the Jamieson Family. Upon information and belief, May stole the
wired funds.
b.

On or about August 27, 2014, May directed the Jamieson Family to wire

$1.2 million to a brokerage account at Securities America for the false purpose of
purchasing securities. May concealed the fact that he intended to and did, in fact, steal
these funds.
c.

In an email dated November 12, 2014, May falsely told Robert Jamieson

he needed $50,000 to renew a bond and directed the Jamieson Family to wire $50,000 to
Upon information and
belief, May stole these funds.

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d.

In an email dated December 11, 2014, May directed Robert Jamieson to

wire $50,000 to the fake

for the false purpose of renewing a

bond. Upon information and belief, May stole these funds.
e.

On June 2, 2014, in response to a request from Robert Jamieson for

$100,000 to pay medical bills, May falsely informed the Jamieson Family it would have
to wait

Upon information and
nother source of
quest.
f.

On March 18, 2015, May falsely told Judith Jamieson he needed $25,000
and directed her to wire $25,000 to the nonexistent
Upon information and belief,

May stole these funds.
g.

On or about June 17, 2015, May directed Judith Jamieson to transfer

$250,000 from the proceeds of the sale of one of the

investment

properties in New Canaan, Connecticut
purpose of purchasing municipal bonds. Upon information and belief, May had no
intention of using these funds to purchase bonds and instead stole the entire $250,000.
h.

On or about July 15, 2015, May falsely blamed

for the lack of sufficient funds to cover checks issued by the Jamieson Family
Foundation. Upon information and belief, the true reason for the lack of funds was that
May had stolen them.
105.

May knew these misrepresentations and omissions were false and intended to

defraud the Jamieson Family at the time he made them.

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106.

The Defendants utilized the means and instruments of communication in interstate

commerce and the mails in their fraudulent communications with the Jamieson Family.
107.

Plaintiffs reasonably relied upon the misrepresentations and fraudulent omissions

communicated to them by Defendants when purchasing and selling securities.
108.

May made the misrepresentations and fraudulent omissions in the course of the

performance of his duties as a registered representative and registered principal of Securities
America.
109.

Securities America is liable for the misrepresentations and fraudulent omissions

communicated by May under the doctrine of respondeat superior liability.
110.

As a result of the misrepresentations and fraudulent omissions by the Defendants,

Plaintiffs suffered damages in an amount to be proven at trial and estimated to exceed $18
million.
SECOND CLAIM FOR RELIEF:
CONTROL PERSON LIABILITY
(15 U.S.C. §78t)
(Against Securities America)
111.

Plaintiffs repeat and reallege each and every allegation contained in paragraphs 1

through 110 as if fully set forth herein.
112.

Securities America possessed and actually exercised control over the securities

business of May. In fact, Securities America was obligated by law and regulation to supervise

113.

May repeatedly lied to the Jamieson Family in connection with its purchase and

sale of securities.

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114.

Securities America acted with gross recklessness in disregarding and failing to

fulfill its

Even when confronted with clear red
-based, fraudulent schemes,

including the scheme to defraud the Jamieson Family.
115.

By failing to comply with its legal obligations concerning the supervision of

116.

By reason of its control over May and its culpable participation

fraudulent schemes, Securities America is liable to the Jamieson Family for all damages suffered
by the Jamieson Family pursuant to Section 20(a) of the Securities Exchange Act of 1934.
117.

The damages suffered by the Jamieson Family are estimated to exceed $18

million.
THIRD CLAIM FOR RELIEF:
FRAUDULENT CONCEALMENT
(Against all Defendants)
118.

Plaintiffs repeat and reallege each and every allegation contained in paragraphs 1

through 117 as if fully set forth herein.
119.

Defendants owed the Jamieson Family a duty to disclose material facts

concerning their investments.
120.

May, Bell and ECP issued false statements that overstated the value of certain

accounts held by the Jamieson Family, including the following:
a.

In or about August 2015, May and ECP issued a false statement indicating

that certain joint accounts held by Robert and Judith Jamieson held approximately $5.7
million in securities.

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 Case 7:19-cv-01817-VB Document 1 Filed 02/26/19 Page 23 of 33

b.

In or about August 2015, May and ECP issued a false statement indicating
ately $300,000 in securities.

c.

In or about December 2015, May and ECP issued a false statement

indicating that certain joint accounts held by Robert and Judith Jamieson held
approximately $6.1 million in securities.
d.

In or about December 2016, May and ECP issued a false statement

indicating that certain joint accounts held by Robert and Judith Jamieson held
approximately $6.4 million.
e.

In or about June 2017, May and ECP issued a false statement indicating

that certain joint accounts held by Robert and Judith Jamieson held approximately $6.9
million.
f.

In or about December 2017, May and ECP issued a false statement

indicating that certain joint accounts held by Robert and Judith Jamieson held
approximately $8.7 million.
121.

May, Bell and ECP knew the Jamieson Family

had substantially less value than they represented to the Jamieson Family.
122.

May, Bell and ECP intentionally concealed the true value of the Securities

America accounts to hide their fraudulent scheme and their theft of the
savings.
123.

Other agents of Securities America sent correspondence to the Jamieson Family

that contained false information including the following correspondence:
a.

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 Case 7:19-cv-01817-VB Document 1 Filed 02/26/19 Page 24 of 33

accounts at Securities America held substantially less than $25 million in assets.
b.

On or about November 18, 2018, the Director of Service Operations at

accounts at Securities America held substantially less than $10 million in assets.
124.

Upon information and belief, these agents of Securities America knew these

statements were false at the time they made them or were reckless in not knowing the true value
of the accounts.
125.

y

making investments and other financial decisions based on the mistaken belief that they had
millions more in savings than they actually had.
126.
allowing Defendants to continue to manage their investments.
127.
Securities America in the course of the performance of his duties as a registered representative
and registered principal of Securities America.
128.

In addition to its direct liability, Securities America is liable for the

misrepresentations and fraudulent omissions communicated by May under the doctrine of
respondeat superior liability.

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 Case 7:19-cv-01817-VB Document 1 Filed 02/26/19 Page 25 of 33

129.

damages in

an amount to be proven at trial and estimated to exceed $18 million.
FOURTH CLAIM FOR RELIEF:
FRAUD
(Against all Defendants)
130.

Plaintiffs repeat and reallege each and every allegation contained in paragraphs 1

through 129 as if fully set forth herein.
131.

May and ECP made material misrepresentations and omitted material facts in

connection with
132.

.

Plaintiffs reasonably relied upon the misrepresentations and fraudulent omissions

communicated to them by May and ECP when purchasing and selling securities and making
other investment decisions.
133.

May made the misrepresentations and fraudulent omissions in the course of the

performance of his duties as a registered representative and registered principal of Securities
America.
134.

Securities America is liable for the misrepresentations and fraudulent omissions

communicated by May under the doctrine of respondeat superior liability.
135.

As a result of the misrepresentations and fraudulent omissions by the Defendants,

Plaintiffs suffered damages in an amount to be proven at trial and estimated to exceed $18
million.

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 Case 7:19-cv-01817-VB Document 1 Filed 02/26/19 Page 26 of 33

FIFTH CLAIM FOR RELIEF:
AIDING AND ABETTING FRAUD
(Against Securities America and Bell)
136.

Plaintiffs repeat and reallege each and every allegation contained in paragraphs 1

through 135 as if fully set forth herein.
137.

May and ECP made material misrepresentations and omitted material facts in

connection with purchases and sales of securities by the Jamieson Family and investment advice
provided to the Jamieson Family by May and ECP.
138.

Plaintiffs reasonably relied upon the misrepresentations and fraudulent omissions

communicated to them by May and ECP when purchasing and selling securities and making
other investment decisions.
139.

Through the many suspicious transactions

the

unexplained withdrawal of $350,000 in 2003, Securities America had knowledge of May and

140.

By providing brokerage accounts services that enabled May to implement his

fraudulent scheme, communicating false information to the Jamieson Family, and allowing May
supervision, Securities America provided
substantial assistance
141.

n information and belief,

Bell knew that
Family and knew that funds being transferred by the Jamieson Family were not being used to
purchase bonds as May claimed.

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142.

Bell provided

by, among other things, falsely characterizing funds stolen from the Jamieson Family
facilitating the deposits of
bank accounts.
143.

Securities America and Bell are liable to the Jamieson Family for aiding and

abetting fraud.
144.

As a result of Securities America

aiding and abetting fraud, Plaintiffs

suffered damages in an amount to be proven at trial and estimated to exceed $18 million.
SIXTH CLAIM FOR RELIEF:
NEGLIGENT MISREPRESENTATION
(Against Securities America)
145.

Plaintiffs repeat and reallege each and every allegation contained in paragraphs 1

through 144 as if fully set forth herein.
146.

Securities America owed the Jamieson Family a fiduciary duty, and, as a result of

its superior knowledge and expertise, had a special relationship of trust with the Jamieson Family
that required Securities America to provide the Jamieson Family with correct information
concerning its investments. For at least part of the 17-year time period, Securities America had
discretionary authority to manage the
147.

Securities America, through May and other agents, made representations to the

Jamieson Family that Securities America should have known were false.
148.

Securities America provided this information knowing the Jamieson Family

needed it to make important investment decisions.

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 Case 7:19-cv-01817-VB Document 1 Filed 02/26/19 Page 28 of 33

149.

The Jamieson Family reasonably relied on this information and acted upon it by

making investments and other financial decisions based on the mistaken belief that they had
millions more in savings than they actually had.
150.

The Jamieson Family reasonably relied on this information and acted upon it by

allowing Defendants to continue to manage their investments.
151.

As a result of

s, Plaintiffs

suffered damages in an amount to be proven at trial and estimated to exceed $18 million.
SEVENTH CLAIM FOR RELIEF:
BREACH OF FIDUCIARY DUTY
(Against all Defendants)
152.

Plaintiffs repeat and reallege each and every allegation contained in paragraphs 1

through 151 as if fully set forth herein.
153.

At all relevant times, a fiduciary relationship existed between the Jamieson

Family and the Defendants.
154.

Defendants owed the Jamieson Family fiduciary duties, including the duty to act

155.

From 2001 through early 2018, Defendants repeatedly breached the fiduciary

conn

duties they owed to the Jamieson Family by failing to exercise due care, failing to act in goodfaith, and by acting in their own interests to the detriment of the Jamieson Family.
156.

May breached his fiduciary duties in the course of the performance of his duties

as a registered representative and registered principal of Securities America.

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157.

In addition to its direct liability,

under the doctrine of respondeat superior liability.
158.
damages in an amount estimated to exceed $18 million.
EIGHTH CLAIM FOR RELIEF:
AIDING AND ABETTING BREACH OF FIDUCIARY DUTY
(Against Securities America and Bell)
159.

Plaintiffs repeat and reallege each and every allegation contained in paragraphs 1

through 158 as if fully set forth herein.
160.

May breached the fiduciary duties he owed to the Jamieson Family.

161.

Securities America knowingly induced or participated in the breach by collecting

fees and benefitting from May scheme while failing to

-

based, fraudulent schemes, including the scheme to defraud the Jamieson Family.
162.

By failing to comply with its legal obligations concerning the supervision of

fiduciary duties he owed to the Jamieson Family.
163.

Bell also knowingly induced or participated in

breaches of fiduciary duty

, directing the Jamieson Family to sign forms authorizing the surrender
of the Allianz Annuities,
bank accounts.
164.

As a result of Securities America and Bell

fiduciary

breaches, the Jamieson Family suffered damages in an amount estimated to exceed $18 million.

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NINTH CLAIM FOR RELIEF:
NEGLIGENCE
(Against all Defendants)
165.

Plaintiffs repeat and reallege each and every allegation contained in paragraphs 1

through 164 as if fully set forth herein.
166.

At all relevant times, Defendants owed the Jamieson Family a duty to provide

investment advice and investment advisory services in a manner that served the best interests of
the Jamieson Family.
167.

At all relevant times, Defendants owed the Jamieson Family a duty to provide

investment advice and investment advisory services in a manner that complied with applicable
rules and regulations, including rules requiring the Defendants to ensure the Jamieson
investments were suitable and requiring Securities America to supervise associated financial
advisors such as May.
168.

Defendants repeatedly breached their duty to provide investment advice and

investment advisory services in a manner that served the best interests of the Jamieson Family
and complied with applicable rules and regulations.
169.
proximately caused the Jamieson Family to suffer damages in an amount estimated to exceed
$18 million.
170.

The damages suffered by the Jamieson Family were foreseeable by Defendants. In

reasonable and effective manner, Securities America either knew or should have known, based
on past experience and numerous well-known examples of similar fraudulent schemes by

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 Case 7:19-cv-01817-VB Document 1 Filed 02/26/19 Page 31 of 33

registered representatives of broker-dealers, that the type of damages suffered by the Jamieson
Family was foreseeable.
TENTH CLAIM FOR RELIEF:
UNJUST ENRICHMENT
(Against all Defendants)
171.

Plaintiffs repeat and reallege each and every allegation contained in paragraphs 1

through 170 as if fully set forth herein.
172.

Defendants benefitted from their

investments.
173.

May, Bell

earned fees and commissions. In total, May, Bell and ECP took millions from the Jamieson
Family.
174.

Securities America earned fees and commissions from the Jamieson Family while

recklessly failing to supervise May.
175.

Upon information and belief, Securities America earned over $500,000 in fees

and commissions.
176.

Equity and good conscience require Defendants to provide restitution to the

Jamieson Family in the amount that Defendants benefitted illegally from their wrongful conduct.
ELEVENTH CLAIM FOR RELIEF:
CONVERSION
(Against all Defendants)
177.

Plaintiffs repeat and reallege each and every allegation contained in paragraphs 1

through 176 as if fully set forth herein.

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178.

The Jamieson Family had a possessory right to and interest in the assets they

entrusted to Defendants to be suitably invested.
179.

May, Bell and ECP, intentionally and without authority from the Jamieson
he funds to be
by using the funds for their own purposes.

180.

May, Bell and ECP failed to return the funds to the Jamieson Family and

181.

May converted

his duties as a registered representative and registered principal of Securities America.
182.
respondeat superior liability.
183.

As a result of

conversion of its funds, the Jamieson Family suffered

damages in an amount estimated to exceed $18 million.

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 Case Document 1 Filed 02/26/19 Page 33 of 33

PRAYER FOR RELIEF
WHEREFORE, the amieson Family demands judgment against the Defendants as follows:

1. Compensatory damages in an amount to be proven at trial but not less than $18
million;

2. Punitive damages in an amount to be determined at trial but not less than ?ve (5)
times the amount of compensatory damages proven at trial;

3. An award of the costs and disbursements of this action; and

4. Such other and further relief as the Court may consider equitable, just, and proper.

Dated: New York, New York
February 26, 2019

SHER TREMONTE LLP

   

By:

Justin M. Sher

Robert Knuts
Allegra Noonan

90 Broad Street, 23rd Floor

New York, New York 10004

Tel: 212.202.2600

Email: jsher@shertremonte.com

 
 

Attorneys for the Jamieson Family

33