Aaron Johnson Pleads Guilty to $600K Investment Fraud

GRIMY TIMES EXCLUSIVE: In a stunning revelation, Aaron Johnson, 36, of Haddam, has admitted to siphoning off over $600,000 from his clients through an elaborate investment fraud scheme. The admission comes as part of a guilty plea before U.S. District Judge Jeffrey Alker Meyer in New Haven.

Judge Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that Johnson was President and Chief Investment Officer at J. Capital Advisors until his registration was revoked by the State of Connecticut in October 2013. According to court documents, Johnson began skimming excessive fees from client accounts almost immediately after becoming a registered investment advisor with Trade PMR in April 2010.

Johnson’s scheme involved submitting requests for unearned fees to Trade PMR, which would then deduct the money from clients’ accounts and deposit it into an account controlled by J. Capital Advisors. By December 2012, Johnson had defrauded 19 victims out of a total of $619,231.09. He attempted to cover his tracks by repaying one victim’s fees, falsely claiming a billing system glitch was to blame.

Sentencing is scheduled for May 23, 2017, where Johnson faces up to 20 years in prison. He was arrested on February 17, 2016, and is currently out on a $250,000 bond. The investigation was led by the U.S. Postal Inspection Service and the State of Connecticut Department of Banking, with prosecution handled by Assistant U.S. Attorney Susan L. Wines.

Johnson’s actions have left a trail of devastation for his victims, who trusted him to manage their investments. His case serves as a stark reminder of the potential dangers in the financial world when trust is betrayed.

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