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Mass. Broker Charged With Defrauding 9/11 Widow

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Shari Tolbert's husband, Otis, was killed in the Pentagon on September 11, 2001. (credit: DVIDs)

Shari Tolbert’s husband, Otis, was killed in the Pentagon on September 11, 2001. (credit: DVIDs)

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BOSTON (CBS) – A Massachusetts broker has been charged with defrauding a California woman whose husband was killed in the 9/11 attacks on the Pentagon, according to the Securities and Exchange Commission.

SEC officials have alleged that Beverly resident James J. Konaxis, a former representative of Sentinel Securities, Inc., defrauded the widow, who reportedly made her investments with money she obtained from the September 11th Victim Compensation Fund.

WBZ-TV’s Diana Perez reports

The SEC alleges that Konaxis, who earned approximately $550,000 in commission on the widow’s account, “excessively traded his customer’s funds while knowingly or recklessly disregarding her interests.”

The value of the widow’s accounts decreased from $3.7 million to $1.6 million. The SEC alleges that the decrease was due in large part to Konaxis’s decision-making and commission.

The woman and her late husband, who was employed by the U.S. Navy, had three children. The middle child is a disabled girl.

When reached by WBZ-TV, the woman declined to comment.

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