June 24, 2021

Mass. Advisor Stole Client’s Retirement Savings To Pay Student Loans

Mass. Advisor Stole Client's Retirement Savings To Pay Student Loans



A Swampscott, Mass-based financial advisor pleaded guilty in federal court in Boston to stealing more than $250,000 in retirement assets from an elderly client to pay his student loan and other personal expenses, according to the U.S. Attorney’s Office in the District of Massachusetts.


Felix Gorovodsky, 29, pleaded guilty to one count of bank fraud for accessing and liquidating the client’s bank account, according to the office.


According to the court document, Gorovodsky served as a financial advisor for the victim. But she terminated the advisor relationship around July 2019 and revoked the power of attorney she had granted him. The release said Gorovodsky fraudulently accessed and liquidated the account.


As part of the scheme, he forged the client’s signature on a purported “gift letter,” and sent it to the bank in an attempt to legitimize the fraudulent transfer, according to a release from the U.S. Attorney. The release said Gorovodsky used the stolen retirement funds for personal expenses, including paying off more than $100,000 in federal student loans.


Gorovodsky could have faced up to 30 years in prison, five years of supervised release and a fine of up to $1 million at his sentencing for bank fraud on Sept. 14, the release noted. But due to a plea deal, the parties have agreed to a sentence, subject to the court’s approval, of 33 months in prison and two years of supervised release, prosecutors said. He also must pay a restitution of at least $318,000.

 

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