A Southampton investment advisor has been convicted of orchestrating a scheme to misappropriate over $1 million from clients.
Jeffrey Slothower, 47, a former registered investment adviser and founder of Battery Private, Inc., was found guilty of all three counts of an indictment charging him with wire fraud, investment adviser fraud, and money laundering.
The scheme, which took place between 2017 and 2018, involved Slothower promising clients a steady rate of return on their investments without market risk. In reality, he used the funds to purchase luxury items, including a $125,000 Mercedes Benz SUV and a $13,000 Rolex watch.
According to the indictment, Slothower solicited business from two victims, a couple from California, and promised them an eight percent return on their investment. However, he never invested the funds in the purported HOA Bonds, instead funneling the money into his personal bank accounts.
When confronted with the evidence, Slothower made payments to the victims that were falsely represented as quarterly distributions from their investments. The scheme was eventually uncovered, and Slothower was arrested and charged with the crimes.
“This case was about greed and betrayal of clients who trusted the defendant and thought their money was safely invested with him,” said Breon Peace, United States Attorney for the Eastern District of New York. “Protecting investors from fraudsters like the defendant has always been a priority of this Office and today’s verdict underscores our resolve to vigorously prosecute those who enrich themselves at the expense of victims.”
Slothower faces up to 30 years in prison when sentenced.
The verdict was announced by Breon Peace, United States Attorney for the Eastern District of New York, and James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office.
The case was investigated by the Federal Bureau of Investigation, New York Field Office, and prosecuted by the United States Attorney’s Office for the Eastern District of New York.
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Key Facts
- State: New York
- Agency: DOJ USAO
- Category: White Collar Crime|Fraud & Financial Crimes
- Source: Official Source ↗
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