New Haven, Connecticut – Lester Burroughs, a 61-year-old financial advisor from Torrington, was sentenced to 33 months in prison for misappropriating approximately $575,000 from investment clients, most of whom were elderly.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the sentencing occurred via videoconference.
Burroughs owned Burroughs Investment Group, a full-service financial consulting firm based in Torrington, and was a registered securities broker with the Financial Industry Regulatory Authority.
Beginning in at least 2012 and continuing through 2019, Burroughs misrepresented to certain clients that their money would be invested in legitimate guaranteed investment contracts. Instead, he used his clients’ money to pay business expenses and other clients’ ‘guaranteed’ investment returns.
Burroughs began the scheme after an investment he recommended to a client failed to materialize an expected return and Burroughs feared the possible financial repercussions to his business should that client file a complaint with regulatory agencies.
Burroughs, who is released on a $100,000 bond, is scheduled to report to prison on June 1, 2020.
This matter was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Heather L. Cherry.
The Securities and Exchange Commission filed related civil charges against Burroughs.
Burroughs pleaded guilty to one count of wire fraud on December 4, 2019.
Key Facts
- State: Connecticut
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
