SEC Bars Ex-Edward Jones Rep Who Defrauded Clients Out of $800K
Ronald T. Molo, accused of using client money to pay for two cars, has been sentenced to two years in prison.
The Securities and Exchange Commission barred an ex-Edward Jones broker indicted in 2021 for defrauding clients out of about $800,000, according to an administrative proceeding document filed by the SEC on Wednesday.
Ronald T. Molo allegedly spent some of the money he took from victims to pay for “at least two vehicles,” credit card balances, lottery tickets and home mortgages for himself and his in-laws, according to the Justice Department indictment of Nov. 15, 2021.
In May, Molo was sentenced to two years in prison, according to court documents.
On Sept. 27, 2022, a final judgment was entered against Molo in U.S. District Court for the Northern District of Illinois. He was also ordered to pay $815,104 in disgorgement and prejudgment interest.
The SEC “deems it appropriate and in the public interest that public administrative proceedings be, and hereby are, instituted” against Molo, the regulator said in the document, posted on its website Wednesday.
“In anticipation of the institution of these proceedings,” Molo submitted an offer of settlement that the SEC accepted, it said.
As part of the settlement, Molo agreed to be “barred from association with any broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization; and … is barred from participating in any offering of a penny stock,” the SEC said.
Molo, who pleaded guilty in 2021 to one count of fraud, was initially charged with six counts of wire fraud.
“Each count of wire fraud is punishable by up to 20 years in federal prison,” the Justice Department said at the time.
The former registered representativ]e joined Edward Jones as a broker in May 2001, according to his Brokercheck report. The firm terminated him on June 15, 2021, after allegations that “clients transferred funds to an external account believed to be related to the registered representative,” a disclosure said.
Molo is no longer a registered broker or advisor, according to BrokerCheck.