James Kenneth Couture, Investment Adviser Fraud, Massachusetts 2022

James Kenneth Couture, a 42-year-old resident of Sutton, Massachusetts, pleaded guilty to a long-running scheme to steal more than $2.8 million from six clients. The scheme, which lasted from approximately 2009 to 2020, involved Couture misappropriating funds from his clients by transferring them into fictitious mutual funds and then selling other clients’ holdings to pay investment returns.

Couture, a registered investment adviser with an office in Worcester, invested his clients’ funds in securities and various insurance products, including annuities, and set up and assisted clients with profit-sharing plans and other retirement products. He forged clients’ signatures on documents or caused clients to sign documents by falsely representing that the proceeds of transactions would be used for the clients’ benefit.

As part of this scheme, Couture stole from clients using their own profit-sharing plans and conducting transactions in their names to disguise his fraudulent transactions. He was initially charged in connection with this scheme in June 2021 and subsequently charged with witness tampering in connection with his efforts to deceive a victim in the case.

The charges against Couture include four counts of wire fraud, four counts of aggravated identity theft, one count of investment adviser fraud, and one count of witness tampering. The charges of wire fraud each provide for a sentence of up to 20 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater.

United States Attorney Rachael Rollins, Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division, and Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The U.S. Securities & Exchange Commission and the Employee Benefits Security Administration of the U.S. Department of Labor provided valuable assistance with the investigation.

Assistant U.S. Attorney Kriss Basil of Rollins’ Securities, Financial & Cyber Fraud Unit is prosecuting the case. Couture’s sentencing is scheduled for January 11, 2022.

The U.S. Attorney’s Office for the District of Massachusetts announced that Couture faces a maximum sentence of up to 20 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater, for the charge of witness tampering.

Couture’s scheme resulted in the theft of over $2.8 million from his clients, highlighting the importance of monitoring financial transactions and being cautious when working with investment advisers.

The case serves as a reminder of the need for vigilance in protecting one’s financial interests and the consequences of engaging in fraudulent activities.

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