A Rockland man who is imprisoned for swindling $2 million from fellow Haitians has been banned from the securities industry.
The U.S. Securities and Exchange Commission ruled on March 13 that Ruless Pierre’s failure to defend himself in an administrative proceeding left the agency no choice.
“While Pierre is currently incarcerated, he has made no assurances about his future plans,” the SEC stated in an opinion. “His perpetration of two separate investment schemes further evidences a fundamental lack of honesty and integrity, creating a serious risk that he would commit another violation of the securities laws if given the chance.”
In 2022, Manhattan federal court jury convicted Pierre for securities fraud, embezzlement, and structuring bank deposits to evade detection. He was sentenced to prison for seven years and ordered to forfeit nearly $3.4 million and to pay $2 million in restitution to his victims.
Pierre, formerly of Nanuet, had formed an informal investment club in 2016 to solicit money to invest in various securities, and later, in a fast food franchise. The investors were mostly friends and relatives in the Haitian community.
He promised preposterous profits, such as 20% returns every 60 days, while he was actually losing money in day trading, according to court records. He also embezzled $322,000 while working as the controller of the Palisades Conference Center in Orangetown.
In the administrative case, the SEC sought to determine if remedial action was appropriate to protect the public. Pierre did not respond to SEC inquiries, so the agency sanctioned him.
“The remedy is intended to protect the trading public from further harm,” the SEC said, “not to punish (him).”
Pierre’s misconduct was egregious and went on for several years, the SEC said. He obtained about $5 million from his clients, but rather than investing it as promised he diverted nearly $2 million for personal expenses and repaying prior investors to keep the scheme going. And he acted with intent to deceive, manipulate or defraud.
If Pierre were to reenter the securities industry after he is released from prison, the SEC found, he would have more opportunities to violate securities laws.
Now he is barred from associating with any investment adviser, broker, dealer, or securities organization.
Pierre, 55, is imprisoned at the federal penitentiary in Waymart, Pennsylvania, near Scranton. He is scheduled for release on June 17, 2027.
