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Monmouth County Man Sentenced to 102 Months for Investment Fraud Scheme
TRENTON, N.J. – Scott Newsholme, 43, of Farmingdale, New Jersey, was sentenced to 102 months in prison for perpetrating a long-running scheme to defraud investment clients out of millions of dollars, forging an attorney’s signature without authorization, and preparing false tax returns.
Newsholme, who previously pleaded guilty to a three-count information charging him with wire fraud, aggravated identity theft, and preparing fraudulent tax returns, was sentenced by U.S. District Judge Anne E. Thompson in Trenton federal court.
According to documents filed in the case, Newsholme owned and operated at least three different financial advisory and tax return preparation businesses since 2002. Between 2007 and 2017, he recommended to multiple clients that they invest their money with him, which he would use for personal expenses, including multiple vehicles, bedroom furniture, debits at casinos, bank transfers to his personal bank accounts, and ATM withdrawals.
Newsholme misappropriated more than $3.1 million from his investment clients, resulting in net investment losses of more than $1.8 million. He also forged a letter from an attorney to conceal his misappropriation of $62,000 from one of his clients.
Newsholme’s scheme was uncovered in October 2017, after law enforcement discovered that he continued his fraudulent activities while out on bail. He was charged in an amended criminal complaint with mail fraud, wire fraud, securities fraud, and aggravated identity theft, and his bail was revoked.
In addition to the prison term, Judge Thompson sentenced Newsholme to three years of supervised release. U.S. Attorney Craig Carpenito credited special agents of the FBI, Newark Division, Red Bank Resident Agency, under the direction of Special Agent in Charge Gregory W. Ehrie, and special agents of IRS Criminal Investigation for their work on the case.
Newsholme’s sentence serves as a reminder of the consequences of investment fraud and the importance of vigilance in protecting one’s financial interests.
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Key Facts
- State: New Jersey
- Category: White Collar Crime|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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