Ex-Hotel Employee Allegedly Swindled Colleagues for $700K in Investment Scheme

A former hotel banquet worker faces accusations of running a deceptive investment scheme that allegedly swindled his coworkers out of more than $700,000. The Massachusetts Secretary of State, William Galvin, has brought securities fraud charges against David Markiewicz from Hull, claiming that he operated a fake investment company to solicit funds from investors, which he then used for personal expenses depicting investors’ money as his personal “piggy bank.”

According to an administrative complaint filed by Galvin’s Securities Division, Markiewicz took advantage of his former colleagues by promoting a purported “get rich quick options and securities program” while working at a Boston hotel during the pandemic peak’s lockdown. Over a span of eight years, a total of 12 Massachusetts investors suffered losses exceeding $700,000 due to Markiewicz’s subpar trading performance and misuse of their investments.

In 2017, Markiewicz established Nantasket Trading, LLC, a front to lend legitimacy to the scheme, suggesting that he managed the funds through a pooled investment fund at the company. However, Markiewicz had not registered to sell or trade securities in Massachusetts. Instead, he channeled investors’ money into his personal bank account, engaging in futures and options contract trading through his brokerage account. The complaint further alleges that he only transferred a portion of the funds to his brokerage account and splurges the remaining portion on personal expenses such as shopping, travel, dining, and a soccer academy in Arizona.

To conceal the misappropriation, Markiewicz fabricated financial statements showing substantial growth to mislead his investors. Despite the substantial losses incurred, he continued to solicit additional investments, falsely assuring investors of the opportune time to invest.

In response, the Securities Division is seeking an order mandating Markiewicz and Nantasket Trading, LLC to return all the illegitimate profits derived from the scheme, provide suitable repayment with interest to the affected investors, prohibit them from registering in the securities industry in Massachusetts, and impose an administrative penalty.

As the state’s primary securities regulator, the Secretary of the Commonwealth oversees the division’s complaints proceedings through an administrative forum presided over by a hearing officer. In conclusion, these actions underscore the significance of regulatory oversight in safeguarding individuals and upholding financial integrity in the investment landscape.