(Bloomberg) -- A former Morgan Stanley financial adviser was sentenced to more than seven years behind bars for ripping off retirees and other clients in a decade-long Ponzi scheme.
Shawn Edward Good took in $7.2 million from at least 13 victims, according to federal prosecutors in Raleigh, North Carolina. Instead of investing the money in real estate projects and tax-free municipal bonds, he used it to pay off earlier investors and to fund a lavish lifestyle, they said, calling him a “financial predator.”
Good’s fraud lasted from 2012 to 2022 and cost his clients more than $3 million, prosecutors said in a court filing. He was sentenced Wednesday to seven years and three months in prison by US District Judge James C. Dever III, according to a statement from Michael Easley, US attorney for eastern North Carolina. He was also ordered to pay $3.6 million in restitution to victims.
“Shawn Good robbed the savings and retirements of clients who trusted him – including a widow, a single mom, and a retired police officer,” Easley said in the statement.
Good pleaded guilty in September 2022 to wire fraud and money laundering.
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Good’s lawyer, Joe Zeszotarski, didn’t immediately respond to a voicemail and email seeking comment on the sentencing.
“This individual has not worked at Morgan Stanley since February 2022,” a spokesperson for the bank said in a statement. “The conduct he was convicted of, which affected a small number of clients, is plainly unacceptable. We cooperated fully with law enforcement and other authorities, and appreciate that the criminal prosecution has been successfully concluded.”
Good used client money for high-end restaurants, a home and vacation condo and trips to Europe and Disney World, according to the government. He also paid for cars, including a Lexus RX350, a Porsche Boxster, a Tesla Model 3 and an Alfa Romeo Stelvio.
Between September 2017 and August 2019, he transferred $136,000 in investor funds to “a female acquaintance,” according to prosecutors. His Venmo account showed $110,000 in payments with memo lines that included “tattoo,” “because your sexy,” “Hotel for Destiny,” “Nailz” and “shopping.”
Good told clients he was putting their money into low-risk investments that would return as much as 10% in three- or six-month terms. He persuaded some to take out lines of credit secured by their Morgan Stanley investment and retirement accounts, according to the government.
The case is US v. Good, US District Court, Eastern District of North Carolina (Raleigh).