Advisor Gets Over 12 Years For $16M Fraud

Advisor Gets Over 12 Years For $16M Fraud

The SEC and federal prosecutors racked up another win on Tuesday after an Illinois federal judge threw the book at a shady financial advisor who pilfered $16 million in mutual fund shares from clients.

A former Comprehensive Capital Management investment advisor was sentenced to over 12 years in prison and ordered to pay over $16 million in restitution for his role in a seven-year scheme to defraud clients out of mutual fund shares and other securities fraud.

The Illinois court’s 151-month sentence was slightly harsher than the 131-month sentence Roth had asked for after pleading guilty to one count of mail fraud and one count of money laundering in October 2011.

The SEC’s March 2011 complaint alleged that Champaign, Ill.-based Roth stole $16 million worth of mutual funds from 11 clients whom he provided investment advice. Roth allegedly transferred the funds out of the clients’ accounts without authorization, sold the shares and funneled the cash into other companies and accounts under his control.

 The judge ordered Roth—who is out on bail—to voluntarily surrender into custody on April 2, noting that Roth had waived his right to appeal.  An attorney for Roth did not immediately respond to a request for comment. 

Hide comments


  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.