Financial Advisor Faces Criminal Charges for Misusing Client’s Funds
Date: 2023-11-24 Author: Dima Zakharov Categories: EVENTS
The Alleged Misuse:
According to reports, C.T. misappropriated $4.69 million from a client while working at Valeo Financial Advisors in Carmel, Indiana. The misuse involved personal expenditures, such as a home equity loan tied to his residence and gambling activities.
Guilty Plea and Restitution:
In addition to pleading guilty to the charges, C.T. has agreed to pay $1.73 million to the IRS for underreported income and $4.69 million in restitution to the client. These payments are part of his guilty plea agreement.
Legal Consequences:
Under Indiana laws, filing a false tax return can lead to a maximum of three years in prison and a fine. Meanwhile, wire fraud convictions can result in up to 20 years in prison and a fine of up to $250,000.
Bogus Real Estate Investment:
The accused financial advisor, who worked at Valeo Financial Advisors from 2012 to 2022, allegedly diverted $4.7 million to a company he established, SCNT LLC. This money was taken from a client known for prudent real estate investments, with the advisor claiming it was for a legitimate investment.
Company Response:
Valeo Financial Advisors confirmed the termination of the advisor in February of the previous year amid the allegations. The company emphasized that the incident involved a single advisor, a single client, and a single account. Upon learning of the investigation, Valeo Financial Advisors promptly collaborated with the authorities.
Concealed Actions:
The financial advisor allegedly concealed his actions from both the client and the employer, assuring them that the funds were invested in real estate. The court documents do not disclose how these fraudulent activities were uncovered.
