Carter Financial Consulting LLC’s Owner Stole $6.15 Million from Investors

Carter Financial Consulting LLC has shady ownership. Its owner was sued by the regulatory authorities for stealing from his clients.

Carter Financial Consulting LLC’s Michael Barry Carter is facing allegations of stealing from his investors. Find out how he stole this much from his clients and what happened next:

About Carter Financial Consulting, LLC 

Carter Financial Consulting, LLC is an accounting service that applies a calculated and inventive approach throughout all services that won’t disrupt your daily activities. They claim to center on your strengths, and therefore the role is to support a clear accounting structure that will enable you to do your desired work. It claims to assist its clients in understanding both their business and their ambitions.

carter financial consulting llc

Who is Michael Barry Carter?

Cater is the owner of Carter Financial Consulting, LLC. He came up with the initial concept for Carter Financial Consulting, LLC early in 2016, he started developing the concept for the company based on conversations with clients and after finishing a number of unique projects. Over time, he started to combine the talents he had learned in the military and the businesses he worked in. Further on he switched to full-time management in 2019.

According to the U.S. Attorney,s office for the District of Maryland. Michael Barry Carter, a former financial advisor for Morgan Stanley, was arrested and sentenced to five years in prison after the SEC filed parallel charges in July 2020 for stealing around $6.15 million from brokerage customers and an elderly client of an investment where he was found guilty.

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Those who were close to Carter and trusted him were among the victims, according to the SEC. Over 60 illicit cash wire transfers from the customers’ and clients’ accounts to his personal bank account at a different financial institution were reportedly made by Carter using false internal paperwork as part of his plan. Then, the SEC claims that Carter gave the investors fraudulent account statements in the order to hide his crime from them. The actual amount statement and other various correspondence were forwarded by Carter to fake email addresses or post office boxes which were under his control.

carter financial consulting llc

Michael Barry Carter utilized all the money from Carter Financial Consulting, LLC to maintain his own lifestyle, which includes paying for a home mortgage, a fancy car, and hundreds of thousands of dollars in credit card bills and cash withdrawals. According to Marc P. Berger, Directors of the SEC’s New York Regional Office, Carter was charged with brokerage clients, his advising clients, and their families while working as a financial advisor. 

As Carter was accused of violating the antifraud provision of the Securities Exchange Act of 1934 and the Investment Advisers Act of 1940, accounting for the SEC’s complaint, which was submitted to the U.S. District Court for the District of Maryland. The SEC is seeking injunctive relief, the restoration of allegedly ill-gotten gain plus prejudgment interest, and a civil penalty.

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carter financial consulting llc

However, between October 2007 and May 2019, “MIKE” Carter of Carter Financial Consulting LLC is accused of falsifying internal forms to make 60 unauthorized transfers from customer accounts, according to the charges. Carter was allegedly linked to Morgan Stanley from 2009 to 2011 before spending a brief time at Ameriprise. From 2011 until July 2019, when he was fired for “allegations of theft of customer assets” according to his FINRA Broker Profile. Carter was once more registered with Morgan Stanley in Mclean.

According to the Attorney’s office, Carter Financial Consulting LLC admitted allegedly stealing more than $50,000 from a non-profit sports group as a part of his plea agreement. According to the press, Carter allegedly spent all the money stolen from his client on his mortgage, credit card bills, and country club membership fees.

Carter will also be ordered to pay a $4.36 million money judgment, which is the most equivalent net proceeds he has obtained from the scheme. However, according to a few documents, Carter had retired $1.79 million money to his victims before the scam was detected and according to the press, after learning his fraud had been discovered, he repaid the non-profits.

The Allegations on Michael Barry Carter the owner of Carter Financial Consulting, LLC

Following are the Allegations against Michael Barry Carter-

  • Michael Barry Carter the owner of Carter Financial Consulting, LLC employed at Morgan Stanley was terminated in July 2019 and this came after the allegations that he had stolen money from clients.
  • A customer’s power of attorney claimed in September 2019  that  Carter opened a Liquidity Access Line online on the client,s behalf without consent. Carter allegedly made unlawful withdrawals from the account, according to the customers’ POA. The damages in the lawsuit totaled $1,329,558 in the settlement.
  • Carter was accused of making unlawful withdrawals from another customer’s account in September 2019. A $676,174 settlement was reached in this lawsuit.
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Why does this Matter?

One of the most egregious and dishonest abuses of power a broker may engage in against an investment is stealing a customer’s money. When a securities broker uses an investor’s money for something other than what the two parties originally agreed upon, it is known as misappropriation. This can involve the broker shifting the money to their own account and using it for their own personal use or investing the money in securities other than those that had been agreed. No matter what the money was used for, the investor’s money has been taken. The broken had the investor’s trust, but the trust was broken.

Complaint filed against the Brokerage Firm

Michael Barry Carter may be accused of a security scam, and The White Law Group is looking into whether his former employers are liable for failing to adequately supervise him. Brokerage companies may abuse client accounts and conduct transactions that violate securities laws, such as making fraudulent claims, the brokerage firm they are working with may be liable for investment deprivation, and if the Brokerage firms cease to monitor the business activities of their employees may be legally responsible for investment losses due to negligent administration for the delinquency of their employees. With offices in Chicago, Illinois, The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities rules and regulations/ company law firm.

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Always read all the documents carefully before making any type of investment. Therefore, if you or any person you know had experienced any financial losses due to any reason, action, or recommendation by Michael Barry Carter of the former Morgan Stanley of McLean, Virginia you can speak to any experienced security lawyer regarding your investment losses or recovery. However, brokerage companies like Carter Financial Consulting should oversee their agents, and if an agent is found guilty of a crime while acting as the company’s representative, liability for losses brought on by the fraud/scam or negligence may be shifted to the company.

Avoid dealing with Carter Financial Consulting LLC.

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