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Clive Salesperson Sentenced to 19 Years for Elderly Fraud Scheme
A Clive man has been sentenced to 18.5 years in federal prison for wire fraud and an additional six months for criminal contempt of court, bringing an end to a 17-year-long scheme in which he defrauded over 30 elderly individuals out of more than $3 million.
Zachary James Flaherty, 48, of Clive, Iowa, was sentenced on June 12, 2024, for his crimes, which spanned from 2006 to 2023. Flaherty’s victims, who were primarily elderly and from Iowa, Kansas, Missouri, and Nebraska, lost their retirement savings and other monies, with some losing nearly all of their life savings.
According to public court documents and evidence presented at sentencing, Flaherty defrauded his victims by lying to them about the returns and bonuses they could receive by investing with him, as well as the losses they could incur. He also submitted false misrepresentations to insurance companies to obtain annuities on his clients’ behalf, and then spent the money on himself, his family, and his businesses.
Flaherty’s victims were not financially situated to invest in annuities, which are long-term investments that typically take years to fully vest. He misrepresented the extent of the penalties, taxes, and fees his victims would suffer by investing with him, and repeatedly encouraged his victims to withdraw funds and cancel annuities, resulting in victims suffering massive amounts of losses.
At least six of Flaherty’s victims were recently widowed when he exploited them, and he assisted with funeral arrangements or related matters for multiple victims’ spouses. Flaherty’s conviction for criminal contempt of court resulted from his violations of court orders issued in February 2024, which prohibited him from selling or dissipating his personal property, which could be used to pay some of the money back to victims.
Flaherty was ordered to pay over $2.4 million in restitution to the victims of his fraud. Numerous victims spoke at sentencing about how Flaherty’s actions had betrayed their trust in him, shattered their faith in other people, and left them with limited financial resources. Several victims reported suffering health problems as a result of the increased anxiety and stress caused by Flaherty’s crimes.
The investigation into Flaherty’s crimes was led by the U.S. Attorney’s Office for the Southern District of Iowa, in conjunction with the Iowa Insurance Division and the U.S. Department of Labor. Flaherty’s sentencing brings an end to a lengthy and complex investigation, and serves as a reminder of the importance of protecting vulnerable individuals from financial exploitation.
Flaherty’s case is a stark reminder of the devastating impact of financial crimes on innocent victims. His sentence is a testament to the tireless efforts of law enforcement and the justice system to hold perpetrators accountable for their actions.
Key Facts
- State: Iowa
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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