The Colorado Securities Commission said it had obtained a temporary restraining order against a former Mass Mutual stockbroker for allegedly defrauded two friends who became clients by gaining improper access to their brokerage accounts, forging their signatures on checks and using more than $400,000 of their money for his own personal benefit including buying a home.
The order by Denver District Court Judge J. Eric Elliff temporally bars Charles D. Fraley and his company Wealth By Design from the securities business in the state and freezes their assets.
According to the complaint filed in court, Fraley allegedly obtained the brokerage business from a married couple (one of who had served with Fraley in a Colorado fire department) and told their money would be invested in “a well balanced portfolio of investments” including Roth IRAs and traditional investments such as stocks and bonds and mutual funds and non-qualified investments.
The office of Securities Commissioner Fred Joseph
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