Securities Fraud Lawyer Blog
Ronald Roach a broker with Securities America Barred over DC Solar transactions.
Ronald Roach, a registered representative from Walnut Creek, California, formerly with Securities America, was barred from association with any broker dealer or registered investment advisor by the SEC after pleading guilty to wire fraud and securities fraud charges related to DC Solar. The Court accepted his guilty plea on October 22, 2019. He is scheduled to be sentenced on January 28, 2020 and faces a maximum of 10 years in prison as a result of a scam involving the sale and lease back of mobile solar electrical generators.
DC Solar, the company with which Roach and Joseph Bayliss were affiliated, solicited investors by stressing the tax benefits available from solar energy investments. In addition to being a broker and an investment advisor, Roach prepared financial statements for DC Solar which the prosecutors argued improperly stated the returns being generated for investors on the DC Solar transactions.
The DC Solar transactions were classic “sale leaseback”, with investors putting up money and letting DC Solar do the rest. In this regard, the transaction met the classic Howey test of “an investment of money in a common enterprise with the expectation of profits (solely) from the efforts of others.” SEC v. Howey 328 U.S. 293. In a typical DC Solar transaction investors would put down a portion of the cost of the generator, finance the balance through DC Solar or an affiliate, then lease the generators back to DC Solar, which would then find customers willing to lease the units. The SEC investigation uncovered that this sale leaseback transaction was unprofitable, and that DC Solar paid older investors with funds raised from new investors.
In the criminal case it was alleged that Roach prepared the fraudulent financial statements that hid the Ponzi scheme from investors.
Upon learning of Mr. Roach’s guilty plea, Securities America terminated him on October 23, 2019.
Ronald Roach’s registration and disciplinary history
In order to lawfully sell investments to the public, one must either be registered or exempt from registration.
Ronald Roach was registered with Securities America from 2009 to 2019 and with Brecek & Young Advisors from 2006-2009.
According to FINRA’s CRD disclosure report, Ronald Roach has been the subject of an employment termination after allegations and two regulatory investigations.
FINRA is the primary regulator for broker dealers and registered representatives in the United States. FINRA’s role is to promulgate standards and practices for the brokerage industry and to ensure compliance with its rules by licensed entities and individuals.
FINRA has two primary ways to ensure compliance with the securities laws: by means of an enforcement unit that investigates and disciplines wrongdoing, and through the establishment of an arbitration forum where investors can resolve disputes against broker dealers. FINRA’s arbitration forum, FINRA Dispute Resolution is the largest arbitration forum in the country for resolving investor disputes, and typically processes over 10,000 filings annually.
The Law Office of David Liebrader practices exclusively in the field of investment loss recovery. For the past 24 years, we have dedicated our law practice to assisting investors who have been victims of investment fraud via unlawful and unsuitable investment transactions. During that time, we have recovered money for over one thousand individuals, pension plans, trusts, and companies. The recoveries we have obtained via judgments, awards and settlements on behalf of our clients exceed $40,000,000.
If you suspect that you have been the victim of investment fraud, or had a financial advisor recommend unsuitable investments to you, call us today for a free, confidential consultation at (702) 380-3131.