James Seltzer Gets 6 Years for $4.6M Securities Fraud

SAN JOSE — James Seltzer, a 69-year-old former securities lawyer from Belvedere, Marin County, was sentenced to 72 months in federal prison for orchestrating a multi-million-dollar securities fraud scheme that spanned nearly four years. U.S. District Judge Lucy H. Koh handed down the sentence today, calling Seltzer’s actions “callous” after hearing emotional testimony from his victims. The former attorney admitted to swindling more than $4.6 million from 16 investors by falsely promising returns on legitimate investments while instead funneling the money into his personal accounts.

Seltzer pleaded guilty on September 14, 2016, to one count of securities fraud under 15 U.S.C. § 78, capping a federal case that exposed a calculated pattern of deceit from at least October 2007 through May 2011. According to his plea agreement, he lured investors—many of them women with whom he had personal relationships—under false pretenses, exploiting trust to gain access to their finances. He then diverted nearly all of the funds for his own use, covering personal and business expenses while leaving his victims financially gutted.

The court ordered Seltzer to pay full restitution in the amount of $4,646,555. Beyond the criminal case, bankruptcy records reveal he accumulated over $20 million in debts to additional creditors, painting a broader picture of systemic financial betrayal. His flight from justice began in 2010, when he fled the country and remained a fugitive abroad for five years before being apprehended in Hawaii in September 2015.

A federal grand jury indicted Seltzer on June 18, 2015, charging him with five counts of securities fraud, one count of mail fraud under 18 U.S.C. § 1341, and three counts of money laundering under 18 U.S.C. § 1957. As part of the plea deal, prosecutors dismissed the remaining counts after he entered a guilty plea to the lead securities fraud charge. The investigation was led by the IRS Criminal Investigation Division and the FBI, with Assistant U.S. Attorneys Timothy Lucey and Arvon Perteet handling the prosecution, assisted by Laurie Worthen.

In addition to his 6-year prison term, Judge Koh sentenced Seltzer to three years of supervised release upon his eventual return to society. He has been ordered to surrender by April 19, 2017, to begin serving his sentence in federal custody. Authorities emphasized that Seltzer’s abuse of his legal credentials and manipulation of intimate relationships made the crime particularly heinous and far-reaching in its impact.

This case stands as a stark reminder of how white-collar criminals exploit trust, position, and privilege to commit financial devastation under the guise of legitimacy. For the victims—many of whom lost life savings—the sentence brings a measure of justice, but no full recovery. The DOJ, FBI, and IRS-CI say they remain committed to holding fraudsters like Seltzer accountable, no matter how long they run.