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SEC Charges Connecticut Broker With Fraud

April 5, 1989

NEW YORK (AP) _ A Connecticut investment broker allegedly bilked his clients out of more than $1.5 million by keeping their money for his personal use rather than investing it, federal authorities charged Tuesday.

According to a complaint filed in U.S. District Court in Manhattan by the Securities and Exchange Commission, the broker, William S. Hoglund, 47, of Greenwich, Conn., told relatives, friends and others that ″investments he would make on their behalf would be low risk, liquid and highly lucrative.″

However, the SEC said, in a scheme that began in December 1986, Hoglund made few investments, and instead deposited his clients’ money into three accounts he kept at Citibank.

At least 22 investors residing in four states invested about $1.8 million with Hoglund. The SEC refused to name the states.

According to court papers, ″after persistent requests or lawsuits″ Hoglund returned about $250,000 to several investors. However, investors have been unable to get approximately $1,560,000 from Hoglund.

″Investors found it difficult and sometimes impossible to get all or part of their investments back. Hoglund evaded, deceived and made misrepresentations to investors regarding the return of their funds,″ the complaint said.

Hoglund’s attorney, Joel M. Lutwin, said his client would have no comment on the SEC complaint.

However, according to the court papers, Hoglund told a meeting of his clients in November 1987 that he had not invested their money as promised.

U.S. District Judge Thomas P. Griesa issued a temporary restraining order on Tuesday freezing Hoglund’s assets and ordering him to stop accepting money from investors. Griesa scheduled a hearing on the matter for April 14.

According to the SEC, Hoglund presented himself to investors as a top executive of Capital Alaska Inc. or H-H Capital Corp. and said he had seats on several stock exchanges.