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.