The recent SEC investigation resulted in forcing an end to the brokerage career of Paul George Chironis, who has also agreed to pay $350,000 to the Sisters of Charity, a "group of mostly elderly nuns in the Bronx." The SEC concluded that Chironis had manipulated the charity's brokerage accounts to maximize profits for himself.
The Post reports:
According to the SEC's order, Chironis defrauded the nuns from January 2007 to January 2008 by churning the two accounts with low-risk tolerance that held primarily mortgage-backed securities issued by Ginnie Mae, Fannie Mae, and Freddie Mac, as well as certain closed-end bond funds. The order further found that Chironis charged the nuns' accounts excessive and undisclosed markups and markdowns in riskless principal transactions.
George S. Canellos, director of the SEC's New York Regional Office, said in a statement, "Chironis's irresponsible actions virtually guaranteed the convent's accounts would lose money due to the undisclosed and excessive costs being incurred while Chironis focused on generating substantial commissions for himself."
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