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Adviser Jailed for Fraud Based on Emails that Crossed State Lines

 

A financial adviser was sentenced to 10 years in prison and ordered to make $2.9 Million in restitution because his emails that furthered his activities were transmitted over state lines, thereby constituting federal wire fraud.  The SEC alleged that the defendant used cross-border emails and a web-based portal to provide false account statements and Ponzi-like payments.  The SEC asserts that he misappropriated client funds by stealing their checks and depositing them into his bank account.  The U.S. Attorney brought a criminal indictment against him for wire fraud based on the emails.

OUR TAKE: Federal wire fraud crime carries big prison and financial penalties.  In this case, the U.S. Attorney leveraged the SEC charges into a federal conviction based on his cross-state emails.

https://www.sec.gov/litigation/admin/2017/34-80459.pdf

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