On September 6, 2017, the Securities and Exchange Commission charged a New Jersey tax preparer and investment adviser with stealing at least $1 million from clients to support his gambling habit. The SEC accuses Scott Newsholme of Farmingdale of fabricating account statements, doctoring stock certificates, and forging promissory notes as a part of the scam.
The SEC believes that Newsholme carried out the aforementioned activities to convince clients to give him their money, which was supposed to be invested in various securities. The complaint alleges that the defendant cashed the clients’ checks at a check-cashing store and then pocketed the funds. Newsholme is accused of using the money for his own personal expenses, including for gambling in Atlantic City and to make Ponzi-like payments to other clients.
Also today, the United States Attorney’s Office for the District of New Jersey announced the filing of criminal charges against Scott Newsholme. The SEC will attempt to obtain disgorgement of ill-gotten gains, as well as interest and penalties. The SEC will also seek permanent injunctions against the defendant. Scott Newsholme remains innocent until proven guilty beyond a reasonable doubt in a court of law.