Scottsdale Man Admits to Scamming His Close Friend and Neighbor

The Arizona Corporation Commission ordered respondent Patrick D. Nilles of Scottsdale to pay $75,000 in restitution and a $20,000 administrative penalty for committing securities fraud. 

The Commission found that, while not registered to offer or sell securities in Arizona, Nilles took a neighbor’s money to supposedly invest it in the stock market. After becoming close friends with the neighbor, Nilles used some of the investor’s funds for personal expenses and falsely represented financial gains in his quarterly trading reports to the investor. Additionally, the Commission found Mr. Nilles had state and federal tax liens filed against him, which he did not disclose to the investor.

All documents relating to this agenda item can be found in the Corporation Commission's online docket at edocket.azcc.gov and entering docket number S-21159A-21-0252.