New Jersey Financial Advisor Scott Newsholme Pleads Guilty to Stealing from Elderly Clients
The Sonn Law Group is currently investigating former broker Scott Newsholme of Farmingdale, N.J., broker CRD # 3062837.
The SEC barred Newsholme from the financial services industry after the broker admitted that he had used the funds of elderly clients – in excess of 3.1 million – to pay for personal luxuries and gambling. Newsholme has plead guilty to charges and now faces up to 20 years in prison.
According to a statement from the U.S. District Attorney’s office, New Jersey District, between 2007 and 2017, Newsholme told clients if they invested with him, he would use their assets to invest in various securities, including bond instruments issued by a New Jersey country club, a bond investment in a video game production company and investments in the production of a movie, as well as mutual funds, annuities, life insurance policies, educational accounts, money market funds and an escrow account for the purchase of a house.
The SEC claims that, to conceal his scheme, Newsholme falsely told clients that their investments were faring well, backing up the claim with fabricated account statements, doctored stock certificates and phony promissory notes purporting to be bonds and other debt instruments. All the while, the ex-advisor had cashed his clients’ checks at a check cashing store and pocketed their money, the SEC said.
The experienced securities fraud attorneys at the Sonn Law Group are interested in speaking with any individual who has ever invested with Newsholme, or with his former employer SII Investments, Inc. If this describes you, please contact us now to speak with an attorney about your situation. You may be entitled to compensation for losses incurred due to unlawful conduct.