SEATTLE - The first federal case against Eastside investment broker Rhonda Breard could be filed at any time, KING 5 News has learned.
It will claim investment giant ING Financial Partners should have known better, and better supervised Breard.
After all, the company settled a similar case justtwo years ago.
In 2008 the company agreed to what is called a consent order with the State of Illinois.
Without admitting guilt, ING settled with the state and defrauded investors agreeing to pay a $110,000 fine and pay back millions to clients.
That case has striking similarities to the Breard investigation.
Nevin Gillette was sentenced to 11 years in federal prison for cashing client's checks, keeping the money, and sending out phony statements.
It sounds all to familiar to Seattle Attorney Tony Shapiro of Hagens, Berman, Sobol & Shapiro.
You don't get away with this type of conduct if you are adequately supervised by the broker-dealer, Shapiro said. In this case there was clearly insufficient supervision over what Ms. Breard was doing.
Many have lost their entire life savings. Shapiro says his firm will go after Breard, and ING.
We're hopeful we can recover some if not all of the money, he said.