A Scottsdale man, Patrick D. Nilles, has been ordered by the Arizona Corporation Commission to pay $75,000 in restitution and a $20,000 administrative penalty for committing securities fraud.
According to the Commission, while not registered to offer or sell securities in Arizona, Nilles took a neighbor’s money to supposedly invest it in the stock market.
After becoming close friends with the neighbor, Nilles used some of the investor’s funds for personal expenses and falsely represented financial gains in his quarterly trading reports to the investor.
Additionally, the Commission found Nilles had state and federal tax liens filed against him, which he did not disclose to the investor.