Benjamin Lee Grant, Sage Advisory Group Massachusetts Investment Scam Discovered
September 30, 2010 - Benjamin Lee Grant, of Boston, Massachusetts, allegedly ran his brokerage firm, Sage Advisory Group, LLC, as a massive investment scam. The Securities and Exchange Commission ("SEC") filed a complaint that alleges Grant fraudulently enticed more than 300 customers with over $100 million in assets to join his firm. Apparently, Grant recruited clients whose accounts he managed at his former employer, Wedbush Morgan Securities, shortly after his departure in September 2005.
The SEC claims that Grant was a registered representative of Wedbush and almost all of his accounts were by First Wilshire Securities Management, a California investment adviser. Apparently, days after resigning from his position at Wedbush, Grant sent a letter to his former clients on October 4, 2005 advising them that they should switch their accounts to his new operation, Sage. The complaint alleges that Grant's letter told his former clients that Sage was formed solely to manage their funds and First Wilshire suggested moving their accounts from Wedbush to a discount broker, Charles Schwab & Co.
Grant's letter also allegedly advised clients that a new fee and commission structure called a "wrap fee" was cheaper according to First Wilshire. The complaint also claims that Grant subsequently told clients that First Wilshire was no longer willing to manage their assets at Wedbush and they had to switch to Sage.
