Financial Adviser Sentenced to 5 Years for $1.2M Wire Fraud

Dusty Sternadel, a 43-year-old financial advisor, was sentenced to 5 years in federal prison for her role in a $1.2 million wire fraud scheme that targeted at least ten clients, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

According to court documents, Sternadel, who worked at a large multi-national financial services firm, tricked clients into sending her money and checks, which she deposited into her own accounts. The scheme lasted from 2019 to 2022 and resulted in over $1.2 million being stolen from the victims.

Prosecutors revealed that most of the victims were elderly, and some suffered from cognitive decline. The scheme involved transferring funds from clients’ accounts to Sternadel’s personal checking account, and then instructing the clients to write out checks to cover the missing funds.

The scheme was uncovered by the Federal Bureau of Investigation’s Dallas Field Division, and Assistant U.S. Attorney Matthew Weybrecht prosecuted the case. Assistant U.S. Attorney John de la Garza handled the forfeiture. Sternadel pleaded guilty to wire fraud in January and was sentenced by U.S. District Judge Reed C. O’Connor.

The victims of Sternadel’s scheme were refunded by the firm for most of the stolen funds, but some were not. The refunds included:

• Victim 1: $286,021.63
• Victim 2: $18,122
• Victim 3: $101,240.50
• Victim 4: $21,064, with $9,334 refunded by the firm
• Victim 5: $43,099.21
• Victim 6: $51,600
• Victim 7: $204,442.82
• Victim 8: $40,000
• Victim 9: $288,979.89
• Victim 10: $175,201.25

The case highlights the vulnerabilities that financial advisors can take advantage of, particularly those targeting elderly and vulnerable individuals.