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SEC Freezes Ex-LPL Broker Sonya D Camarco's Assets in Alleged $2.8 Million Fraud and Misappropriation Scheme

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Claiming that former LPL Financial broker Sonya Delora Camarco aka Sonya D Fatchett of the firm's Colorado Springs branch stole several millions of dollars from clients during a 13-year fraud spree, the Securities and Exchange Commission obtained an emergency court order to freeze Fatchett-Camarco's assets, fearing that she could imminently move or convert the allegedly stolen funds. For instance, Camarco's living trust features five houses used by Camarco, and/or her family, at least some of which were paid for, according to the SEC, using misappropriated investor funds.

The El Paso County, Colorado assessor's website indicates the Camarco Living Trust owns three properties within its boundaries.

Camarco formerly served on the board of the Monument Academy charter school, including as its treasurer and, as recently as Spring 2017, school board president, serving on the board's financial committee. In the summer of 2017, Camarco launched a campaign for a seat on the Lewis-Palmer School District #38 (Monument, CO) School Board, at one time writing that school finance is "simple," before withdrawing on August 8, when LPL formally terminated her.

An SEC complaint filed against Camarco in the United States District Court for the District of Colorado alleges that Camarco used her wholly owned company (Camarco Investments, Inc.) to misappropriate over $2.8 million in investor funds from customers by engaging in a fraudulent scheme by directing LPL Financial to make out checks, drawn on client accounts, to an entity Camarco controlled called "C Investments."

According to the complaint, Camarco arranged for those checks to be mailed to a PO Box in Parker, Colorado, which the post office had registered to none other than Sonya Camarco. Camarco then allegedly endorsed and deposited the checks to an account at FirstBank in the name of "Camarco Investments, Inc.," which is an entity that shares an address with Camarco's office and for which Camarco is the sole registered agent.

The SEC also accused Camarco of intentionally forging client signatures on check requests directing that checks be drawn on client accounts and made payable to C Investments, of misrepresenting to LPL the nature of certain transactions, and of lying to investigators when confronted about the misappropriation scheme.

Investigators allege that Camarco liquidated securities in her clients' accounts, including stocks and money market fund shares, and used the proceeds to write unauthorized checks on the accounts and to make unauthorized payments to accounts that Camarco controlled.

Camarco also purportedly made nearly $500,000 in unauthorized credit card payments, intentionally caused investor funds to be misappropriated and used to pay personal credit card bills, and intentionally took cash advances or transfers from client accounts and used those funds for her personal use.

In discussing Camarco's material misrepresentations and omissions, the SEC wrote, "Camarco told the investors that their accounts were doing well and that there were no problems. Camarco omitted to tell investors that she was stealing money from investor accounts. In reality, the investors' accounts were not doing well because Camarco was stealing money from those accounts for her own benefit. Camarco knew her statements were false when she made them. It would have been material to investors that Camarco was stealing money from their accounts."

When one client asked Camarco about a decline in an investment account, Camarco allegedly responded that the client was "spending too much. In reality," wrote the SEC, "the cause of the decline in the investor accounts was Camarco's theft of investor funds. Camarco omitted to tell investors this information."

Camarco (CRD #2427529)'s BrokerCheck report lists employment with LPL Financial LLC's Colorado Springs, CO branch from 2004 to 2017, and additionally lists SDC as an advisory firm owned by Camarco.

LPL discharged Camarco in August 2017 for depositing third party checks from client accounts into a bank account that she controlled and then accessing the funds for personal use.

If you have invested with former LPL Financial broker Sonya D Camarco of Colorado Springs, or with any representative or financial adviser who has fraudulently withdrawn funds from your investment accounts and misappropriated the funds for their own personal use while leaving you with liquidated and depleted assets, please call The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for an investigation and consultation.

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