Minnesota Man Sentenced For Fraudulently Mishandling Investments
Image Source: First Senior Financial Group
Most Minnesota residents are not experts in business matters outside their particular employment field. As a result, people rely on other individuals to manage their money, their investments and their real estate. With the proper help, people can watch these investments grow into profitable business ventures, free from business disputes and complications. However, when the proper guidance isn’t used, people can lose their assets and their financial security.
Recently, a Minnesota financial advisor has been found guilty of fraud in federal court for his role in swindling assets from retirees. According to reports, the man was given money — nearly $4 million — to make retirement account investments. However, instead of making these investments, the man transferred money to his own bank accounts and used the funds on himself — including the purchase of luxury cars, expensive trips and yacht club memberships.
Investment reports given to his clients were falsified in order to make it appear that the investments were profitable. Further, reports say that the man periodically made payments to clients to lull them into participating. As a result of the conviction on wire fraud charges, the man has been sentenced to 10 years in prison. He was also ordered to pay a $300,000 fine and $2.9 million in restitution.
Mishandled investments are just one possibility when other people are given control over people’s money or real estate. When real estate investments are mismanaged or improperly invested, property owners should know that civil and criminal punishments may be available. Those in charge of another’s money have a duty to property care for that investment. If that duty is not upheld, the property owner may have the right to damages.
Source: Star Tribune, “Financial adviser who scammed retirees given 10-year prison sentence,” David Phelps, Aug. 14, 2014