This week, it was announced that a federal district court had entered a judgment against Scott Newsholme. Newsholme served as a New Jersey-based tax preparer and investment adviser. He was accused of defrauding his clients of more than $1 million and using the company to support his lifestyle and gambling habit. The SEC filed a complaint on September 6, 2017 alleging the Newsholme fabricated account statements, forged promissory notes and doctored stock certificates as a way to convince clients seeking financial planning advice to give him money to invest in securities.
Instead of investing his clients’ money, the defendant is accused of cashing their checks and pocketing the funds, while promising clients that their assets were safe and flourishing. Newsholme was also accused of making Ponzi-like payments to certain investors. In parallel criminal action, Scott Newsholme pled guilty to wire fraud, aggravated identity theft and aiding and abetting the filing of false tax return.
Additional details can be found here.