Timothy J. Roth, Mail Fraud, Money Laundering, Illinois 2011

A former investment advisor, Timothy J. Roth, 57, of Urbana, Ill., has been sentenced to serve 151 months (12 years, 7 months) in prison for orchestrating a massive $16 million mail fraud and money laundering scheme.

According to court documents, Roth admitted to defrauding eleven victims, including companies and individual victims, of approximately $16,151,964 from May 2004 through March 2011.

Roth, who worked as a federally registered investment advisor for a capital management company in Champaign, Ill., and had also formed and operated several personal consulting companies, fraudulently transferred, liquidated and removed mutual fund shares from clients’ accounts for his own personal and business use.

On October 25, 2011, Roth waived indictment and entered guilty pleas to one count each of mail fraud and money laundering. Following his guilty plea, Roth was ordered to pay restitution in the amount of $16,151,964 to the victims of his scheme.

Senior U.S. District Judge Michael M. Mihm ordered that Roth report on April 2, 2013, to the federal Bureau of Prisons to begin serving his prison term. Following completion of his prison sentence, Roth was ordered to remain on supervised release for a period of three years.

The investigation into Roth’s scheme was conducted by the Internal Revenue Service, Criminal Investigations Division; the Federal Bureau of Investigation; the U.S. Postal Inspection Service; the Securities Department of the Illinois Secretary of State; and the Champaign Police Department. The case was prosecuted by Assistant U.S. Attorneys David H. Hoff and Eric I. Long.

Roth’s sentencing serves as a warning to those who seek to exploit the trust of their clients through deceitful and illegal means.

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