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April 30, 2009 at 08:00 PM
A state of Washington advisor is going to prison for six years for embezzling $300,000 from disabled clients’ retirement funds. He apparently served as an “organizational representative payee” of Social Security benefits for over 750 Washington clients. Rather than attending to their medical, food, shelter and clothing needs, he spent their Social Security disability benefits on luxury cars, vacations to Jamaica’s Club Hedonism, Adult Friend Finder services, and other personal items.
A former Ohio insurance agent pled guilty to mail fraud and tax evasion after he defrauded at least 10 clients out of nearly $5 million. Posing as an investment advisor, the man persuaded clients to invest their inheritances and insurance proceeds into his hedge fund. However, instead of investing the funds in the markets as promised, he used the money for personal expenses. He also admitted using funds from new clients to pay off redemption requests from existing clients. Finally, the agent used phony account statements and transferred funds through multiple accounts in an attempt to hide income from the IRS.
