State Division of Consumer Affairs, Through Its Bureau of Securities, Takes Disciplinary Actions Against Two Financial Advisors
NEWARK - The Division of Consumer Affairs’ Bureau of Securities finalized administrative actions against two financial advisors who, in 2008, were denied
registration by the Bureau to work in New Jersey’s securities industry. The Order denying their agent and investment adviser representative registrations was entered after a Bureau investigation had revealed that the funds of an elderly client and a non-profit foundation she had established were misused.
John Edward Mullins and Kathleen Maria Mullins, husband and wife of Margate, N.J., respectively were assessed $40,000 and $18,000 in civil penalties, under terms of their Administrative Consent Orders with the Bureau of Securities. John Mullins also is barred from working in the state’s securities industry. Kathleen Mullins agreed not to apply or act as an investment adviser representative, and any future agent registration will be restricted with a heightened supervisory agreement.
“We hold securities professionals accountable for their misdeeds. Those who think they can defraud investors and enrich themselves will find out how very wrong they are,” Attorney General Paula T. Dow said.
The Mullins became trustees of a non-profit foundation created by the late Esther C. Weil, a supporter of the Kimmel Center for the Performing Arts of Philadelphia and the Choral Arts Society. The Mullins both worked at the Morgan Stanley office in Northfield, N.J., from June, 2002 to August, 2006, when they were terminated for violating company policies.
As set forth in the Administrative Consent Order with John Mullins, in 2006 when the 95-year-old Weil became seriously ill, Mullins:
“Elderly investors are inviting targets for con artists because they are often isolated, willing to trust, and have substantial assets that they’ve built up through the years,” said Thomas R. Calcagni, Acting Director of the State Division of Consumer Affairs. “One in five senior citizens nationally are victims of financial fraud, and our Bureau of Securities is educating elderly investors about the scams we are seeing as well as acting against those who are targeting these investors.”
- Department Store and $11,000 from Four Seasons Hotel and Resorts, the majority of which went to John and Kathleen Mullins’ benefit, including the use of $4,000 of the Four Seasons gift certificates towards a personal vacation to London, England;
- Converted $375,000 of Weil’s assets for his personal use; and
- Charged Weil’s Foundation account $1,634 to purchase 23 bottles of Beringer Private Reserve Cabernet at Morton’s Steakhouse in Atlantic City.
Abbe R. Tiger, Chief of the Bureau of Securities, added that “the Bureau remains focused on imposing substantial penalties on those who would prey upon the most vulnerable among us.”
Deputy Attorneys General Toral M. Joshi and Emanuel S. Asmar represented the Bureau of Securities in this settlement. Deputy Bureau Chief Amy Kopleton, Supervising Investigator Susan Largman, and Investigator Isaac Reyes handled the investigation.
The Bureau of Securities can be contacted toll-free within New Jersey at 1-877-I-INVEST (1-877-446-8378) or from outside New Jersey at 973-504-3600. The Bureau’s website is located at www.njsecurities.gov.
View Consent Order (John Edwards Mullins)
View Consent Order (Kathleen Mullins)