What You Need to Know
- A barred advisor faces a maximum sentence of 20 years in federal prison for each of two counts of wire fraud.
- Brian McQuade continued to identify himself as an advisor after being barred, the prosecutor says.
- The $750,000 he allegedly took was instead spent for his personal benefit.
A federal grand jury returned an indictment charging a barred advisor with wire fraud related to a scheme to steal $750,000 from a nonprofit organization providing services to wounded military veterans.
Although the two-count indictment was returned Sept. 2, it was sealed until Monday, after he was arrested. McQuade made an initial appearance Monday in U.S. District Court in Greenbelt, Maryland, before U.S. Magistrate Judge Charles B. Day.
If convicted, McQuade faces a maximum sentence of 20 years in federal prison for each of two counts of wire fraud, according to Lenzner.
Funds Used for Personal Benefit
“Between in or around June 2018 and continuing until at least in or around August 2021, McQuade devised and intended to devise a scheme and artifice to defraud” the nonprofit foundation, and “to obtain money and property from the Foundation by means of materially false and fraudulent pretenses, representations, and promises, with the intent to defraud and with knowledge of the scheme’s fraudulent nature,” according to the indictment.
McQuade allegedly claimed to be an investment advisor to clients, including the foundation, telling them falsely that he would manage investment accounts on their behalf, the indictment alleged.
He instead allegedly misappropriated clients’ funds, including the foundation’s $750,000, for his personal benefit, transferring the funds to personal accounts and spending the money on restaurants, country club dues, luxury car payments, mortgages and other items, according to the indictment.