Former Alabama Attorney Indicted On Violations Of Alabama Securities Act

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Former Alabama Attorney Indicted On Violations Of Alabama Securities Act

Former Dothan, Alabama attorney, Frederick Mitchell McNab was arrested earlier this month by Houston County Sheriff’s deputies. He was released on $310,000 bond and the surrendering of his passport. The arrest followed on the heels of a Houston County Grand Jury indictment charging McNab with thirty-one counts of alleged violations of the Alabama Securities Act. Those charges include sale of securities by an unregistered investment adviser for compensation and numerous counts of sales of unregistered securities. These charges were designated as Class C Felonies at the time they were allegedly committed, punishable for one year and a day to ten years of imprisonment and up to a $15,000 fine per charge if convicted.

McNab is also facing twelve counts of securities fraud by making untrue statements of material facts or omitting to state material facts in connection with the offer purchase or sale of a security; five counts of securities fraud by engaging in an act, practice or course of business which operates as a fraud or deceit upon any person in connection with the offer, purchase, or sale of a security; three counts of securities fraud by employing a device, scheme or artifice to defraud in connection with the offer, purchase, or sale of a security; and one count of financial exploitation of an elderly person in the first degree. These charges were designated as Class B Felonies at the time they were allegedly committed, and as such, McNab is looking at a punishment of two to twenty years imprisonment and not more than a $30,000 fine per charges if convicted.

McNab is alleged to have misappropriated and misused about $10,554,479 of clients’ funds between November 2002 and November 2013. He is believed to have illegally used client funds to pay previous clients who thought their funds were safe in an account controlled by McNab and earning interest. He is also believed to have used a portion of the funds for personal expenses.

If you or someone you know has lost money as a result of an investment or Ponzi scheme, please contact Richard Frankowski at 888-741-7503 to discuss your potential legal remedies or complete the contact form.

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