Jailed Queen City broker banned by securities industryUnion Leader staff
December 02. 2013 8:28PM
A Manchester stock broker now serving jail time in Maine for defrauding an elderly couple of nearly $200,000 has been banned from the securities industry by the Securities and Exchange Commission in a ruling issued on Nov. 26.
James A. Philbrook, 63, was formerly a registered broker with the ON Equity Sales Co., a subsidiary of the Ohio National Life Insurance Co. and one of the largest independent broker-dealers in the nation.
New Hampshire securities officials say investors in Nashua and Enfield also lost around $20,000 each when Philbrook convinced them to invest in what he said was a pay-per-view program staring celebrity Carmen Electra.
The biggest losers in the scheme were a couple from St. Agatha, Maine, whom Philbrook had been advising for more than a decade.
An Aroostook Country jury convicted him of bilking the couple out of more than $195,000. After the trial in November 2012, Philbrook was sentenced to eight years in prison, with all but three years suspended, and ordered to pay restitution.
Neither Philbrook nor his attorney responded to SEC proceedings that were initiated in October, leading an administrative law judge to declare him in default and guilty of unlawful conduct that was "recurring and egregious," according to the SEC.
Philbrook is barred from association with any broker, dealer or investment adviser, and from participating in any offering of stock. He has 21 days from the notice of the decision to appeal.