Hightower Securities’ Broker Curtis Lyman Allegedly Sold Banyon Notes Tied to Scott Rothstein Ponzi Scheme
Hightower Securities, a high-end broker-dealer that promotes itself as putting its clients first, is facing litigation over the sale of notes into a feeder fund for a $1.2 billion Ponzi scheme.
Curtis Lyman, a Hightower broker based out of its Palm Beach Gardens, Florida branch, sold investors millions of dollars in promissory notes issued by Banyon, LLC. The investments were described as low-risk, high-return investments in legal settlements. To the contrary, these legal settlements were fabricated by notorious Ponzi schemer and disbarred Florida attorney Scott Rothstein, who has plead guilty to the largest investment fraud in South Florida’s history. In November 2009, the Banyon notes went into default after Rothstein’s Ponzi scheme imploded.
Investors allege that Lyman and Hightower breached their fiduciary duties by recommending the Banyon investments, and were negligent in their due diligence of the investments, despite glaring red flags. Banyon was controlled by George Levin, who was previously involved with a company which pled guilty to felony mail fraud and subsequently involved with another company which engaged in fraudulent transfers. In addition, Banyon’s Chief Financial Officer, Frank Preve, was convicted of felony bank embezzlement in the 1980’s.
