Former wirehouse advisor swindles client out of $1.8M

A former wirehouse financial advisor has been indicted for swindling an elderly client out of $1.8 million. The California advisor faces 27 counts of bank fraud, wire fraud, money laundering, and aggravated identity theft. According to a federal prosecutor, the advisor forged more than $1.8 million in checks from the client’s brokerage account and home equity line of credit, siphoning funds to relatives, his girlfriend, and other acquaintances. He also used the money to pay for his credit card bills.

A Texas advisor has been convicted of mail fraud in connection with a life settlement scheme that victimized several life insurance companies. The advisor faces a maximum sentence of 20 years in prison, a $250,000 fine, and restitution. He also is subject to an additional 10-year sentence, to be served consecutively, because he committed the crime while on pre-trial release for another fraud case. According to authorities, the advisor persuaded elderly middle-income consumers to apply for life insurance at no cost. He explained that when they died, their beneficiaries would receive a large benefit. However, he told insurers the individuals were wealthy estate-planning clients with a need for premium financing. The advisor then submitted phony applications and related documents to the insurers, never informing them he planned to transfer the policies to investors. Through his fraud, the advisor received a commission of 95 percent to 105 percent of first-year premium for each policy.