A Chelsea business man with at least three different business entities is under investigation by the Massachusetts Secretary of State's office and the Boston office of the Securities and Exchange Commission. Civil charges were brought against the man who was once a Chelsea Planning Committee member, alleging that he never registered with the state as an investment adviser. State authorities say the man never officially registered his companies and certainly none of them were registered to sell securities.
All-in-all more than 40 investors have accused the man of stealing at least $1 million through the silent transfer of money from one client to another, spending a little on himself along the way. Former clients complained that he did not pay his bills and always had an excuse as to why the interest check wasn't in the mail. Apparently, he has a large house and has been conducting costly renovations. There is currently more than $525,000 in tax liens filed against the man's home.
All of this is pure speculation and allegations at this point. As a public official, the man has a reputation of being articulate, smart, polite, extremely diplomatic and overall a good guy with a good head on his shoulders.
There are some possible solutions to diminish the tax liens on the Victorian house owned by the man. As an investment property, it was originally condominiums and he was changing the property over to become a bed and breakfast. It is very possible that in this economy, like many businesses are currently doing, the businessman had to rob Peter to pay Paul, just to keep from having to shutter his businesses altogether.
Source: boston.com, "Victim count soars in Chelsea man's alleged $1m fraud," Beth Healy, June 16, 2012