Banker Who Revived EF Hutton Is Embroiled in Federal Fraud Probe

The man who led the revival of old-school Wall Street name EF Hutton as a leading SPAC investment bank is embroiled in a federal securities fraud probe, according to people familiar with the matter.

Joseph Rallo was served a search warrant by federal agents in May as part of a securities and wire fraud investigation led by the US attorney’s office in Brooklyn, New York, the people said. The probe was also cited by EF Hutton itself in a lawsuit the firm filed Wednesday accusing Rallo of stealing millions as chief executive officer by falsifying his expense reports.

It’s unclear ...