SEC Charges Former Chicago-Area Investment Professional with Defrauding Elderly Client of $1.2 Million
Litigation Release No. 25536 / September 29, 2022
Securities and Exchange Commission v. Bradley A. Goodbred, No. 1:22-cv-05336 (N.D. Ill. filed September 29, 2022)
The Securities and Exchange Commission today charged Bradley A. Goodbred, a former investment professional, with stealing $1,295,000 from an elderly client who currently suffers from dementia, and using the funds for his personal and business expenses.
According to the SEC's complaint, Goodbred worked as a registered representative and investment adviser representative in the Roselle, Illinois office of an SEC-registered broker-dealer and investment adviser. The complaint alleges that from at least 2012 to 2020, Goodbred solicited one of his clients, now 97 years old, to send him money to make purported investments in real estate investment trusts ("REITs") on her behalf and to transfer the money to one of his businesses. The complaint further alleges that to fund some of the purported investments, the client, with the advice and approval of Goodbred, sold securities in her account and transferred the proceeds to Goodbred. According to the complaint, Goodbred did not use the client's money to make investments in REITs or any other investments on the client's behalf. Instead, he used the client's money for his personal expenses and business expenses unrelated to any purported investments. As alleged in the complaint, Goodbred misappropriated a total of $1,295,000, and repaid the client a total of $454,141.
The SEC's complaint, filed in the U.S. District Court for the Northern District of Illinois, charges Goodbred with violating Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections 206(1) and 206(2) of the Investment Advisers Act of 1940, and seeks injunctive relief, disgorgement, prejudgment interest, and civil penalties.
The SEC's investigation was supervised by Steven L. Klawans and Scott J. Hlavacek of the Chicago Regional Office. The litigation is being led by Eric M. Phillips.