9/11 Widow Loses Big with a Crooked Broker
James J. Konaxis, a former broker for Sentinel Securities, has been charged with defrauding the widow of a victim of the September 11, 2011 attack on the Pentagon of most of her victim compensation settlement money, according to a Bloomberg report.
The Securities and Exchange Commission (SEC) announced that it had charged the Beverly, Massachusetts broker with churning the victim's accounts, which dropped from $3.7 million in value from April 2008 to $1.6 million in value by May 2010. In addition to the massive losses the widow sustained, Konaxis earned nearly $550,000 in commissions by churning her accounts. At the time of the fraud, Mr. Konaxis was employed as a broker with Sentinel Securities, Incorporated. He has consented to a partial judgment barring him from participating in penny stock offerings and being barred from associating with any broker-dealer, investment adviser, municipal-securities dealer or transfer agent.