Secretary of State William F. Galvin charges Cape Cod man with fraud
Daniel J. McLellan of Sandwich has been charged with defrauding an East Sandwich woman who had invested money with him on promises of guaranteed returns, Massachusetts Secretary of State William F. Galvin said Wednesday.
Attempts to reach McLellan were not immediately successful.
While working at a Jiffy Lube in Mashpee, McLellan met a woman who was having her car serviced, according to a press release from Galvin’s office. At some point, they discussed the stock market, and he later identified himself as a broker with a nonexistent firm.
Ultimately, the woman gave him $50,000, and McLellan “retained a significant percentage of those funds for his personal purposes,” Galvin’s administrative complaint alleges.
On March 30, McLellan told the woman that he had lost all her money. Galvin’s press release notes that neither McLellan nor his firm were registered to do securities business in Massachusetts. (Galvin supervises the state’s Securities Division.) McLellan did not respond to two subpoenas issued by the Securities Division, the release said.
According to the complaint, “He deposited the remaining funds into his personal brokerage account and, primarily as the result of his trading them on margin, subsequently lost the money in the market over a six-month period.”
The Securities Division, Galvin’s release said, is seeking an accounting and compensation to the investor for losses resulting from the wrongdoing.Chris Reidy can be reached at firstname.lastname@example.org.