SEC sues stockbroker accused of defrauding a client out of $68 million

SAN FRANCISCO - A former stockbroker has been sued by the Securities and Exchange Commission for allegedly defrauding a client of $68 million, the U.S. Attorney&#39;s Office said Wednesday. <br> <br> Enrique Perusquia, 48, of Jackson Hole, Wyo., is a former senior vice president of Lehman Brothers and Paine Webber. He is accused of funneling tens of millions of dollars from a client into gold mining companies in exchange for kickbacks from 1992 through 1998. The client&#39;s name was not released. <br> <br> A New York Stock Exchange arbitration panel last month ordered a record $429 million award against Persquia after finding that he had committed &#34;fraud, forgery, breach of fiduciary duty, embezzlement, self-dealing, and other heinous acts&#34; with &#34;willful, wanton and gross disregard&#34; for several investment clients. <br> <br> Thomas R. Ajamie, a Houston-based attorney for the fleeced investors said in a statement released Wednesday, &#34;As we showed the NYSE, this Paine Webber broker looted the life savings of innocent customers. These investors, who prevailed in their arbitration case, also deserve credit for reporting what they believed were economic crimes.&#34; <br> <br> Perusquia is alleged to have secretly invested funds in the companies in exchange for commissions. Perusquia specialized in working with clients from Mexico. <br> <br> Perusquia is accused of forging the client&#39;s signature and the Swiss bank funds to buy large blocks of stock and convertible notes in American Resource and its subsidiary, American Pacific Minerals. <br> <br> Perusquia allegedly received $1.3 million in cash from the now defunct mining companies. The SEC also charges that Perusquia misappropriated more than $1.6 million in client funds for personal use from 1992 through 1997. <br> <br> Perusquia worked as a senior vice president of Lehman Brothers in Zurich, Switzerland in 1992. He held the same title at Paine Webber in 1994, working in the San Francisco and New York offices between 1994 and 1998. <br> <br> If convicted, Perusquia faces a maximum of five years in prison and a $250,000 fine per count, plus restitution. <br> <br> Perusquia has a non-published phone number in Jackson Hole and could not be reached for comment. <br> <br> <br>

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