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Regulation and Compliance > Litigation

Ex-Broker Gets 2 Years in Prison for Social Security Fraud, Stealing From Church

By Jeff Berman

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What You Need to Know

  • An ex-broker in Ohio was convicted of stealing more than $370,000 in Social Security disability benefits through fraud.
  • He also made false statements related to his theft of $20,000 from an Ohio church.
  • The former broker and advisor was also ordered to pay more than $370,000 in restitution.

A former Dayton, Ohio-area registered broker and advisor was sentenced to two years in prison on Tuesday for Social Security fraud and making false statements regarding theft from a church in Xenia, Ohio, according to court documents and Kenneth L. Parker, U.S. attorney for the Southern District of Ohio.

Charles Edward Severt Jr., 52, of Xenia, was sentenced in federal court to 24 months in prison for allegedly stealing more than $370,000 in Social Security disability benefits and for making false statements related to his theft of $20,000 from the church.

The sentence was imposed by Senior Judge Walter H. Rice in U.S. District Court for the Southern District of Ohio, Parker announced on Wednesday.

As part of his sentence, Severt will also pay more than $370,000 in restitution, Parker said in a news release.

Thomas W. Anderson, a federal public defender who represented Severt, according to court documents, did not immediately respond to a request for comment on Thursday.

Lied to Get Disability Benefits

Severt was indicted and arrested in March 2021. According to court documents, in connection with his application for disability benefits, Severt claimed he had not worked since 2010 due to a shooting. In reality, however, Severt had been working since at least 2014 in the tree-trimming business.

Severt also stated under oath that his license as an advisor was suspended by the Financial Industry Regulatory Authority for not reporting income from flipping houses.

Court documents, however, pointed out that Severt was actually barred by FINRA for stealing from the church.

A disclosure on his report at FINRA’s BrokerCheck website said that he was permanently barred from associating with any FINRA member firms in 2010 after he took about $20,000 in funds from the church without authorization while serving as its treasurer. He then “failed to respond to FINRA requests for information,” according to the regulator.

Not cooperating with a FINRA investigation results in an automatic bar.

Severt was previously registered as both an advisor and broker, according to BrokerCheck. But the only FINRA firm he was ever associated with as a registered representative was ING Financial Partners, as a broker, from July 1997 until June 2010, according to BrokerCheck.

 (Image: Shutterstock)

Jeff Berman

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