Greedy Broker Scams Seniors

November 18, 2008


More than $400,000 was defrauded from four senior citizens in the Phoenix area leaving an elderly woman at risk of losing her home and an elderly man wondering if he can afford a necessary surgery. Meanwhile, the broker who scammed them is spending $42,000 on a ring for his wife.

Rick McCullough, 36, pleaded guilty to one count of securities fraud and one count of fraudulent schemes and artifices for the crimes committed through his company CactusCash Inc. He has been sentenced to 3 1/2 years in prison and ordered to pay $343,811 in restitution.

Prosecutors said McCullough induced the four seniors, two single women and a couple, to refinance their homes for a much larger amount than necessary, and then convinced them to turn over the proceeds to him to invest.

Read story at KPHO News