A former Morgan Stanley advisor was sentenced to 12 years in prison for a fraud scheme that has deflected nearly $ 5.6 million investors over several years. In November, 46 -year -old Jesus Rodriguez said he was guilty of four criminal accusations, including electronic fraud and aggravated identity theft.
Between May 2018 and August 2021, Rodriguez made a series of fraudulent Morgan Stanley accounts for bank accounts under his control, using the funds for various expenses, including the purchase of a Lamborghini. According to the US Department of Justice (DOJ), he made transactions through “false pretensions, representations and material promises.”
The scheme caused a loss of $ 5,554,968.10 to Morgan Stanley, according to DOJ. In a statement, the bank claimed to have called the authorities as soon as the suspicions against Rodriguez came to light and cooperated with the investigations. The institution also reported that it has fully reimbursed affected customers.
Rodriguez was already under the scrutiny of the financial regulators before the conviction. In January last year, the US Securities Commission (SEC) opened a civil proceedings against it, which is still underway.
In addition, Morgan Stanley has been the target of regulatory investigation into any failures to prevent and detect the fraud committed by Rodriguez and three other advisors. In December, the bank agreed to pay $ 15 million to end the case without admitting or denying guilt.
Another factor that weighed against Rodriguez was the omission of the funds diverted in their income tax statements in the years in which he perpetrated the fraud. According to the authorities, one of the four accusations to which he stated guilty was “falsification and signing of false income tax return.”
