Boston Hotel Worker Who Scammed Coworkers Out of More Than $700,000 Charged With Securities Fraud

A former hotel banquet worker who defrauded several former coworkers out of more than $700,000 has been charged with fraud by Secretary of the Commonwealth William F. Galvin's Securities Division, Galvin's office announced today. David Markiewicz of Hull is alleged to have conducted a years-long scheme in which he created an LLC purportedly to solicit and manage investor funds, used fabricated earnings reports to cover up losses, and misappropriated investors' money for personal use.

According to an administrative complaint filed by Galvin's Securities Division, Markiewicz preyed upon his former coworkers at a Boston hotel, offering a "get rich quick options and securities program" while the hotel was shut down during the height of the pandemic. In total, twelve Massachusetts investors lost more than $700,000 over the course of eight years due to Markiewicz's poor trading performance and his use of nearly investor funds as his own personal "piggy bank."

The complaint states that in 2017, Markiewicz created Nantasket Trading, LLC, an entity used to give the scheme the air of legitimacy and to represent to investors that funds would managed through a pooled investment fund at the company. In reality, Markiewicz, who has never been registered to sell or trade securities in Massachusetts, deposited all investor funds into his personal bank account and traded futures and options contracts through his personal brokerage account.

Transferring only a portion of the funds into his brokerage account and later making several withdrawals from that account, Markiewicz used the remainder of investor funds to pay for shopping, travel, dining, and even a soccer academy in Arizona, the complaint states.

To cover up his scheme, Markiewicz provided investors with false earnings statements showing significant growth in investments. According to the complaint, even after losing nearly all of the funds, he continued to solicit additional investments, telling investors the time to invest "couldn't be more advantageous."

With the complaint, the Securities Division is seeking an order requiring Markiewicz and Nantasket Trading, LLC to disgorge all ill-gotten gains in connection with the fraudulent scheme, provide restitution with interest to all investors, be barred from registration in the securities industry in Massachusetts, and pay an administrative fine.

The Secretary of the Commonwealth is the chief securities regulator in Massachusetts. Through the Securities Division, the office oversees registration, inspections, compliance, examinations, and enforcement under the Massachusetts Securities Act. Complaints filed by the Division are heard before a hearing officer in an administrative forum.