FINRA barred former LPL Financial and Western International Securities broker George Anthony Zedan of Whittier, California for the improper use and conversion of an elderly customer's funds in connection with a purported real estate venture while at LPL in Glendale, CA. Zedan allegedly deposited a $300,000 personal check from the customer into his own account, prompting a bank investigation into possible elder abuse, and, eventually, a felony criminal complaint for arrest warrant filed by the Glendale Police Department. Zedan ultimately evaded criminal prosecution only when the elderly client died.
OHO Disciplinary Proceeding #2013038377001
According to the investigation, Zedan (CRD #3073261) discussed a potential joint real estate venture with an existing elderly LPL Financial customer, who subsequently liquidated over $300,000-worth of securities in her account to use in the purported real estate venture with Zedan.
The report states that following this liquidation, Zedan's 87-year-old client wrote a personal check made out to Zedan for $300,000, drawn on her personal bank account, in which she deposited the $300k in proceeds gleaned from the LPL securities liquidation.
Investigators found that Zedan then deposited this check into his own personal bank account, and subsequently failed to use the funds to purchase real estate. In fact, the findings state that Zedan never identified any properties to place bids on nor did he apply for any loans to purchase any property whatsoever.
Instead, the report concludes, Zedan converted the funds for personal use, including credit card and insurance payments and for other personal expenses, including dining at a Mexican restaurant in Los Angeles.
The findings state that Zedan told the Glendale Police Officer who interviewed him that the $300,000 check from his elderly client was a loan, while the 87-year-old customer herself told Glendale PD that the check was not a loan to Zedan, but an investment in real estate, further telling the police that she "would not have given Zedan the $300,000 as a loan."
The elderly client stated that Zedan had promised her an 18 percent return, and had instructed her to tell her bank that Zedan was her nephew, even though he was not. The bank investigator informed a department Detective that Zedan's deposit was "suspicious," and shortly thereafter Zedan stopped talking to the police and a felony complaint for an arrest warrant was filed.
Three months later in February 2013—or approximately six months after the purported elder abuse began—the elderly client died and the case against Zedan alleging theft from an elder and grand theft of personal property was subsequently dismissed due to the victim's death.
Zedan's BrokerCheck report indicates that after voluntarily leaving LPL Financial in April 2013, or two months after the criminal complaint was dismissed, Zedan joined Western International Securities of Glendale, where he remained from 2013 through December 2015.
If you have invested with former LPL Financial and Western International Securities broker George Anthony Zedan of Whittier, CA, or with any broker or financial adviser whose misrepresentations, false promises, or directions to lie or conduct business away from the firm has resulted in illegal or fraudulent conversions, liquidations, or other illicit actions that have proven harmful to your investments or interests, please call The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for an investigation and consultation.