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Wire Fraud Schemes Unravel for Spartanburg Man
A former Spartanburg man, Claus C. Foerster, 55, has pleaded guilty to multiple counts of wire fraud, swindling his clients out of over $3 million. Foerster, a former financial advisor, worked for national investment counseling firms from 1997 to 2014.
According to Assistant United States Attorney David C. Stephens, Foerster began stealing from his clients in approximately 2000. He would advise them that he had located better investments and convinced them to withdraw their funds from his employers’ accounts and transfer them to his account for further investment.
Once the funds were in Foerster’s account, he would divert them to his own use, creating bogus account statements to keep the scheme going for over a decade. On occasion, he would return some funds to the clients as “profits.”
The United States Secret Service investigated the case, and United States Attorney Bill Nettles commended them and AUSA Stephens for their diligence in the investigation and prosecution.
Foerster faces a possible sentence of up to 20 years in prison and a fine of $250,000 on each of the five counts of the indictment. Judge Bruce H. Hendricks will sentence Foerster after the preparation of a Presentence Report.
The case is a stark reminder of the importance of protecting one’s finances and being cautious of unsolicited investment advice. As the investigation and prosecution of Foerster demonstrate, there are consequences for those who engage in wire fraud schemes.
Contact Person: David Stephens (864) 282-2100 for more information on the case.
Key Facts
- State: South Carolina
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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