The Securities and Exchange Commission charged an investment adviser in Armonk, N.Y for stealing more than $6 million in investor funds for himself. He exploited clients that were mentally ill and handicapped, the SEC reports.
Matthew D. Weitzman used clients money for his own personal use by selling securities through clients’ accounts and transferring their money to a personal bank account. Clients received false account statements, often showing false account balances and inflated securities. Weitzman also engaged in broker-dealer foul play as letters would be fabricated by Weitzman on behalf of his clients to complete money transfers.
Weitzman also took money from his clients’ Individual Retirement Accounts (IRAs) in order to maintain a minimum amount of cash to engage in the unauthorized transfers. Weitzman chose clients from AFW Asset Management, the company that he co-founded based in Purchase, N.Y, to exploit. He targeted clients that were less likely to check their account statements, like $430,000 total transfers from a client that was terminally ill. He took $85,000 from said client in two unauthorized transfers from the widow of the client.
Weitzman has been accused violating many industry rules click for more detail here.