A New York financial advisor is facing charges that he embezzled $20 million from customers, according to the Securities and Exchange Commission. The man is accused of stealing from his customers to provide funds for trading in unprofitable options. The SEC states that the man persuaded some customers to withdraw millions from their own accounts in order to buy municipal bonds. However, once the money was in his hands, he began risky trading practices involving stocks of major companies. When he did make money on his trades, he immediately wired the money to a separate account, which he used for his own personal benefit.
The United States Attorney’s Office for the Southern District of New York has brought charges against the investor, including embezzlement and violations of Section 10(b) of the Securities Exchange Act of 1934. In addition, he has also been charged with violations of the Investment Advisers Act of 1940.
The SEC will attempt to force the defendant to pay back the money he has taken as well as to bar him from any future trading practices. The man’s wife, in whose name experts believe some of the funds were transferred, is named as a relief defendant in the action so that money can be recovered from any accounts she owns.
Those accused of white-collar crimes may wish to seek the help of an attorney who understands not only the criminal code, but also the implications of forensic accounting practices and other financial methods used in bringing charges. With the help of a criminal defense attorney who deals with financial issues, those who are facing charges of embezzlement or other financial crimes may be able to address these charges in the most productive way possible.
Source: HedgeCo.net, “NY Financial Advisor Charged With Stealing $20 Million From Customers,” April 23, 2015