It may be possible for victims of National Prearranged Services, Inc. (NPS) to recoup losses by pursuing claims in arbitration against the securities brokers and/or broker-dealer firms that sold them the investments.
Between 1992 and 2008, NPS’s customers paid approximately $150M for prearranged funeral services and were told that their funds would be kept safe until their time of need. Last week, David Wulf – the adviser to the trusts that took possession of the funds — was convicted in a federal court trial in Missouri on 18 counts, including bank fraud and wire fraud. According to the FBI press release, NPS operated a giant Ponzi scheme and Mr. Wulf and his co-defendants stole funds and/or received funds stolen from the trusts. Each of the co-defendants, James Douglas Cassity, Brent Douglas Cassity, Howard Wittner, Randall Sutton, Sharon Nekol Province, pleaded guilty earlier this year. Each of the defendants will be sentenced in November.
Under FINRA’s rules (NASD Rule 3040) a broker-dealer firm is ordinarily responsible for supervising the outside business activities of its brokers.
Vctims who dealt directly with Mr. Wulf can pursue claims in arbitration against Moloney Securities, Inc., (Moloney Securities), the broker-dealer firm through which Mr. Wulf was registered. According to FINRA’s records, Mr. Wulf was associated with Moloney Securities between September 1999 and August 2013.
If you are a victim of NPS and/or David Wulf and would like to explore your recovery options, please call Blau & Malmfeldt at 312-443-1600 or email Paul Malmfeldt at email@example.com for a free consultation.