Edina Financial Adviser Sentenced to 30 Months in Prison for Stealing $2.1 Million from Clients
ST. PAUL, Minn. – Kristi Margaret Berge, 48, a financial adviser from Edina, Minnesota, was sentenced to 30 months in federal prison, two years of supervised release, and ordered to pay restitution in the amount of $2,104,395, in a wire fraud scheme where millions in client investment funds were misappropriated, announced United States Attorney Andrew M. Luger.
According to court documents, Berge was the founder and CEO of Keep Safe Investments, LLC, or “KSI Financial,” a financial planning and investment services firm. Berge also co-owned and operated J&K Connect LLC, a company that invested in real estate through buying, renovating, and re-selling properties. Berge maintained offices for her companies in Edina, Minnesota. Berge is registered as an investment adviser with the Financial Industry Regulatory Authority (FINRA) and licensed as an investment adviser with the State of Minnesota.
Between June 2020 and February 2023, Berge fraudulently misappropriated approximately $2.1 million from some of her clients’ accounts by falsely representing to clients that she would maintain their money in safe and secure investment accounts, such as individual retirement accounts and 401(k) retirement savings plans.
Berge pleaded guilty to one count of wire fraud earlier this year. She was sentenced yesterday in U.S. District Court by Judge Eric C. Tostrud.
This case is the result of an investigation conducted by the FBI. Assistant U.S. Attorneys Matthew S. Ebert, Harry M. Jacobs, and Craig Baune prosecuted the case.
Berge used the clients’ funds to purchase multiple properties in Edina for her real estate business. She tried to conceal her fraud by falsely labeling her illicit withdrawals as “management” or “administrative” fees and by creating fabricated records to give the false impression that she had authorization to withdraw clients’ investment funds.
The investigation revealed that Berge repeatedly withdrew client funds in varying amounts between $5,000 and $220,000 and deposited the funds into bank accounts she controlled. Berge was charged with one count of wire fraud.
Berge has been ordered to pay restitution in the amount of $2,104,395, which includes the $2.1 million she misappropriated from her clients.
This is a developing story, and we will provide updates as more information becomes available.
Key Facts
- State: Minnesota
- Category: White Collar Crime|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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