In his 24-year career, Taboada has seen a lot. Four of his previous employers were kicked out of the securities business, according to regulatory records.
The heads of his first two employers were barred from selling stocks for fraudulent markups, and at least two salesmen from another firm where he worked served time in prison for securities fraud, according to court records.
Hornblower & Weeks Inc., where Taboada worked from 1999 to 2002, was expelled from the securities business after Taboada allegedly published a misleading report for one of his investment-banking clients. The CEO of that firm, GlobeTel Communications Corp., was jailed for fraud in 2010, according to court documents. Taboada aided the scheme by setting up a sham company, prosecutors said in a filing. He wasn’t charged.
“The absence of charges speaks for itself,” said Michael Bachner, a lawyer for Taboada.
Facebook Fund
Now, he has a new pitch: He offers a way to buy into technology companies before they go public. He says he’s a professional who gives investors ideas and access they couldn’t get on their own.
“I’m a strong believer that just because you can buy dental equipment on the Internet doesn’t mean you should drill your own teeth,” Taboada said.
During the hype surrounding Facebook’s 2012 initial public offering, Charles Morgan raised millions of dollars with a pitch that it could get investors shares at certain prices through its fund, four of the people said. Clients were angry when they learned they had paid as much as $10 a share more than they were told, the people said.
Taboada closed his company and moved across the street to Blackwall after Finra started investigating him in 2012, according to the organization’s records, which don’t show what the probe is about. Three former Charles Morgan brokers said they were called in for interviews by Finra to talk about Taboada and the Facebook fund.
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