Sunday, December 21, 2008
New Jersey Man Arrested On Money Laundering/Ponzi Scheme Investment Fraud
Jeffrey Joseph Southard, 44, of Pittsgrove, New Jersey and a local investment broker, was arrested Friday and charged with defrauding investors out of some $1.3 million with a phony bond investment Ponzi-type scheme. Southard allegedly used the money to pay private school tuition, vehicles, mortgage costs and other personal expenses. According to authorities, Southard lured elderly investors in the area with promises of tax-free returns up to 11 percent, paying back some $400,000 on initial investments. Southard is specifically charged with money laundering, theft by deception, securities fraud and misapplication of entrusted property. He operated as a "from home agent" for GunnAllen Financial from 2003 to 2008, but has since been fired. The State of New Jersey has revoked his securities registration. Southard previously worked for American Express Financial Advisors (now Ameriprise), but left for GunnAllen when he faced charged of selling unregistered securities in 2003. Neighbors described him as a "nice, quiet man." Of course.