21 January 2013

Stockbroker Stole Over $1 Million Dollars From Elderly Client, Sentenced

"A former Lakewood stockbroker was sentenced today to five years in prison for wire fraud and filing a false tax return after he stole more than $1 million from an elderly client and his heirs.
According to prosecutors, Michael D. Montgomery, 44, was first an investment advisor for an elderly man living in Tacoma and later became the trustee of the man’s revocable living trust. He also had power of attorney for the man. From 2003 through 2007, Montgomery misappropriated money from the elderly man’s bank and investment accounts. Investigators also found Montgomery caused $654,600 to be sent by wire from his client’s Charles Schwab account to a bank account before he took the money and spent it on himself.
From January 2004 and July 2006, prosecutors say Montgomery wrote $598,916 in checks to himself from his client’s accounts, purportedly for services to his client. After the client died on July 18, 2006, Montgomery wrote an additional $243,745 in checks to himself from the man’s estate for “estate services.” Montgomery never told the client’s family what these services were and did not report any of the income on his tax returns.  
U.S. District Judge Robert J. Bryan said that there was a “high probability that Montgomery stole from his victims for seven years, beginning in 2001.”
In 2009 the Washington State Department of Financial Institutions revoked Montgomery’s registration as a securities dealer for unethical conduct. While the client’s heirs were left with little, Montgomery moved to Aspen and began training to be an elite triathlete.
“In the years since he was caught and exposed, he has paid nothing in restitution, and offered nothing to the victims,” prosecutors wrote in their sentencing memo. “He has continued to pursue his hobbies, but found no time to earn a dollar for his victims. Montgomery is nonchalant about his fraud, displaying a slick indifference for what he has done. In fact, he is arrogant and shameless.”"
Six Years?  Is that all?  No, really that six years is a big deal.  In a civil case, the defendants -- Robert & Doris Fuller have been judged to have committed fraud, undue influence and financial elder abuse in the amount of $235,000.00.  Order to repay the estate and turn over all real estate... the defendants have thus far thumbed their noses at the court and the district attorney has failed to file criminal charges.
Los Angeles County Superior Court Cases - BP099211, BP122665

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