Former Financial Adviser Charged in $5M Scheme to Defraud Clients, New York 2016
Barry Connell, a former financial adviser at a global financial institution based in New York City, was charged in Manhattan federal court with a multimillion-dollar scheme to defraud clients.
According to the allegations, Connell used his position to effect numerous unauthorized transactions from five accounts belonging to a single family of Bank clients, defrauding them of at least $5 million between December 2015 and November 2016.
The scheme allegedly involved Connell submitting Bank forms falsely stating that he had received client instructions authorizing wire transfers to third parties for the client’s benefit, when in fact he had not received client authorization and the wire transfers were for Connell’s own benefit.
Connell also used one client’s checks, which had been intended only to pay the client’s bills, to instead pay for Connell’s own expenses, including a year’s rent for a house near Las Vegas, country club membership fees, and private jet expenses.
“As alleged, Barry Connell used his clients’ bank accounts as his own, siphoning off millions of dollars to pay for his extravagant lifestyle, including a country club membership and private jet expenses,” said Manhattan U.S. Attorney Preet Bharara.
Connell, 50, of Chester, New Jersey, is charged with one count of wire fraud affecting a financial institution, which carries a maximum sentence of 30 years in prison and a maximum fine of $1 million or twice the gross gain or loss from the offense, and one count of aggravated identity theft, which carries a mandatory consecutive sentence of two years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense.
The case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Won S. Shin is in charge of the prosecution.
The charges contained in the Complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
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Key Facts
- State: New York
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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