Broker Fired For Client Running Ponzi Scheme

Herbert Weinstein, a former advisor with AXA Advisors, was fired from his firm because of his client. The client, Ira Pressman, was accused of running a ponzi scheme and is serving eight years in prison for defrauding 20 investors out of $6 million. Mr. Pressman filed for bankruptcy before being sentenced to prison and trustees sued Mr. Weinstein and his CPA firm, at which he was a partner. Mr. Pressman started a company called PJI Distribution Corp in 2006 that claimed to sell and buy closeout and overstock merchandise. He solicited individuals to invest in the deals, promising them no risk returns of up to 100%. Most of the deals were actually fictitious and Mr. Pressman used investor money to pay new investors. AXA Advisors fired Weinstein in the wake of the scheme because it claimed it was “uncomfortable supervising” him after a judgment that stemmed from a civil lawsuit related to the ponzi scheme. The judgment was entered against Mr. Weinstein and AXA Advisors for $3.1 million. The Financial Industry Regulatory Authority (FINRA) barred him from the industry because he refused to appear for testimony, according to his Letter of Acceptance, Waiver and Consent (AWC).

According to his online FINRA BrokerCheck report, Weinstein was registered with Rescorp Inc. from January 1986 until June 1986, H L Investments from April 1987 until February 1988, The Equitable Life Assurance Society of The United States in New York, New York from April 1999 until January 2000 and AXA Advisors in Huntingdon Valley, Pennsylvania from April 1999 until June 2016. He is not licensed within the industry and FINRA has permanently barred him. If you suffered losses with Mr. Weinstein, please call us today for a free consultation with one of our attorneys. We may be able to help you bring legal action against AXA Advisors for not properly supervising Mr. Weinstein while he was registered there. 312-332-4200.