Richard Diver, Embezzlement, New York 2023

Richard Diver, Former COO, Pleads Guilty to Embezzlement in Manhattan

Richard Diver, 63, of New York, pleaded guilty to embezzlement charges in connection with his fraudulent activities at an asset management company where he served as chief operating officer.

According to the indictment, Diver defrauded the company's clients by hundreds of thousands of dollars and rerouted those funds into his personal account. He also diverted millions of dollars in the company's payroll to which he was not entitled, routing it to his personal account over a period of several years.

Diver's scheme involved overbilling the company's clients, causing them to be debited twice without notice. The excess funds were then routed to his personal bank accounts through the company's payroll system, resulting in a loss of over $700,000 to the clients.

The defendant's embezzlement scheme spanned from 2011 to December 2018, during which time he caused over $4.5 million to be routed to his personal checking account above and beyond his approved compensation.

Diver pleaded guilty to one count of investment adviser fraud and one count of wire fraud before Judge Loretta A. Preska in Manhattan federal court.

The wire fraud count carries a maximum potential sentence of 20 years in prison, while the investment adviser fraud count carries a maximum sentence of five years in prison. The maximum potential penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the Judge.

U.S. Attorney Geoffrey S. Berman praised the investigative work of the U.S. Postal Inspection Service and thanked the New York Regional Office of the U.S. Securities and Exchange Commission, which has filed civil charges against Diver in a separate action.

This case is being handled by the Office's Securities and Commodities Fraud Task Force. Assistant United States Attorney Martin S. Belfance is prosecuting the case.

Diver is scheduled to be sentenced at a later date.

Source: https://www.justice.gov/usao-sdny/pr/former-chief-operating-officer-pleads-guilty-defrauding-asset-management-company-and