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Former Financial Advisor Sentenced to 12 Years in Federal Prison for Multi-Million Dollar Fraud Scheme
EL PASO, Texas – A former Morgan Stanley financial advisor was sentenced in a federal court today to 144 months in prison for committing a multi-million dollar fraud scheme.
According to court documents, from May 2018 to August 2021, Jesus Rodriguez de la Cruz, 46, defrauded his financial services employer, Morgan Stanley, and clients of money through materially false pretenses, representations and promises.
Rodriguez de la Cruz orchestrated fraudulent transfers of funds from the bank accounts of Morgan Stanley and clients to other bank accounts for his own benefit.
In one instance, Rodriguez de la Cruz created false communications and documents impersonating a client and submitted them to Morgan Stanley personnel to cause fraudulent transfers on the client’s line of credit account for personal profit. One of these included a form that falsely claimed the client had verbally authorized the transfer of $48,575.36 for the purchase of real estate in El Paso.
Rodriguez de la Cruz committed similar acts using other Morgan Stanley client accounts. In all, Morgan Stanley suffered a total loss of $5,554,968.10 due to Rodriguez de la Cruz’s scheme. Additionally, Rodriguez de la Cruz did not report any of the embezzled funds as income on his tax returns from 2017 through 2021, causing a loss of $408,055 for the IRS.
Rodriguez de la Cruz was indicted by a federal grand jury in December 2023 and arrested on January 12, 2024. He pleaded guilty on November 5, 2024, to one count of wire fraud, one count of engaging in a monetary transaction over $10,000 using criminally derived proceeds, one count of aggravated identity theft, and one count of making and subscribing a false income tax return.
“This defendant abused the trust of his clients and his responsibilities as a financial advisory to steal millions of dollars in customer funds in order to enrich himself,” said Acting U.S. Attorney Margaret Leachman for the Western District of Texas. “Today’s sentence of more than a decade in federal prison demonstrates that perpetrators of fraud in this district will be investigated and brought to justice.”
The FBI and IRS-CI investigated the case.
Assistant U.S. Attorneys William Calve and Adrian Gallegos prosecuted the case.
Defendant: Jesus Rodriguez de la Cruz
Criminal Charges: Wire fraud, engaging in a monetary transaction over $10,000 using criminally derived proceeds, aggravated identity theft, making and subscribing a false income tax return
City and State: El Paso, Texas
Indictment Date: December 2023
Arrest Date: January 12, 2024
Sentence: 144 months in prison
Total Loss: $5,554,968.10 (Morgan Stanley) and $408,055 (IRS)
Key Facts
- State: Texas
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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