According to a report on the sentencing in The Times-Picayune, Zabalaoui told the judge that she "got hooked as any addict on my drug of choice," but she realized her mistakes after undergoing therapy and "soul searching." It's estimated that 35 people were victims of Zabalaoui's scheme, and many lost their life savings. Actual losses to victims were determined to be about $5 million.
Zabalaoui spent her ill-gotten gains on clothing; credit card balances; mortgages; medical care for her family, her husband's family, her assistant's family and others; rent and living expenses for apartments for friends and family; food for her family and others; and vacations.
From 1993 until late 2007, she created a scheme to defraud numerous clients and guaranteed them between 13% and 26% if they invested in two companies, Paragon Company and Omni Clearing. Unbeknownst to the clients, these companies were both fraudulent. Zabalaoui's sentence is scheduled to start on September 11.
Edward Jones Tops List For Investor Satisfaction
Edward Jones ranked highest in investor satisfaction among full-service investment firms, according to an annual survey released by J.D. Power and Associates.
The company topped the list with a score of 784 on a 1,000-point scale in a study that measures six factors in order of importance: the financial advisor relationship; convenience; investment performance; account offerings; account statements; and fees.
Based in St. Louis, Edward Jones scored particularly well in convenience and account statements. LPL Financial Services, which was second with a score of 773, did well in the financial advisor factor. Charles Schwab & Co. ranked third with 771.
The study found that the financial advisor is the most important aspect, accounting for 30% of overall investor satisfaction in 2009. That's up from 22% in 2008. Investment performance declined in importance in overall satisfaction--to 15% this year versus 24% last year.
"As investors become increasingly uneasy amid current market conditions, they're more often looking to their financial advisors for reassurance and guidance," said David Lo, director of investment services at J.D. Power and Associates. "As investment performance tends to be a relative and subjective measure, it's more important that the financial advisor manages investors' expectations of investment performance."
Raymond James, last year's champ, finished fourth. It, along with Ameriprise Financial and UBS Financial Services, finished in the "better than most" category. The entire list can be found at jdpower.com.
The seventh-annual study was based on responses from nearly 4,500 investors who make some or all of their investment decisions with a financial advisor. It was conducted from March to April 2009. J.D. Power and Associates, a unit of The McGraw-Hill Companies, is a global marketing information company in Westlake Village, Calif.