According to the SEC, Sean Healy of Weston told investors that he would use their money to trade in securities and commodities, promising excellent earnings returns.
However, he is said to have not invested any of the money and instead used to have purchased a home worth $2.4 million, as well as luxury cars, jewelry and home furnishings.
"Rather than investing the money as he promised, Sean Healy used investor funds to finance an extravagant lifestyle for himself and his family," associate director of the SEC's division of enforcement Antonia Chion stated.
Mr Healey's assets have been frozen while an investigation into the charges is ongoing.
Earlier this week the SEC charged Seattle lawyer David Otto with having a role in a fraud scheme worth $1 million.