Jabari Ragas, a 40-year-old resident of New Orleans, Louisiana, has pleaded guilty to money laundering and filing a false tax return in federal court.
Ragas, a former financial advisor at Ameriprise Financial Services, Inc., admitted to embezzling nearly $1,400,000 from clients and failing to pay nearly $260,000 in tax due and owing to the Internal Revenue Service. As part of his plea agreement, Ragas has agreed to pay full restitution.
According to court documents, Ragas began embezzling funds from a client’s Simplified Employee Pension (SEP) account in early 2006. Without authorization, Ragas moved money from the Ameriprise SEP account into an account controlled by him. When the client inquired about the discrepancy, Ragas provided a fraudulent account statement for an account that did not exist.
Ragas further compromised his client’s trust by using an interstate wire to embezzle funds from the client’s Ameriprise account and transferring $20,000 into a different account that he controlled. This act of money laundering carries a maximum sentence of 10 years in prison.
In addition to the money laundering charges, Ragas faces a maximum sentence of 3 years in prison for filing a false tax return. He also faces significant fines, with a maximum of $250,000 for the money laundering count and $100,000 for the tax count.
The case was investigated by the Special Agents of the Internal Revenue Service and the United States Secret Service, with Assistant United States Attorney Jon Maestri handling the prosecution.
Ragas’s guilty plea serves as a stark reminder of the devastating consequences of financial malfeasance. As this case unfolds, it is clear that Ragas’s actions have not only harmed his clients but have also undermined the trust that is essential in the financial services industry.
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Key Facts
- State: Louisiana
- Category: White Collar Crime
- Source: DOJ Press Release ↗
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