States Attorney's Office District of Connecticut
|June 1, 2011||
FORMER FINANCIAL SERVICES COMPANY
The United States Attorney for the District of Connecticut announced that JAMES GLOVER, 54, of West Harrison, New York, waived his right to indictment and pleaded guilty today before United States Magistrate Judge Donna F. Martinez in Hartford to one count of interstate transportation of money obtained by fraud stemming from an embezzlement scheme.
According to court documents and statements made in court, GLOVER was the Managing Director-Settlements and Reconciliations of a Stamford-based financial services company (the “Company”). GLOVER’s responsibilities included transferring funds from the Company to customers to settle or reconcile the customers’ securities transactions.
In pleading guilty, GLOVER admitted that, from approximately January 2009 to January 2010, he caused nine separate transfers of funds, which totaled approximately $625,000, to be sent from the Company to a bank account in New Jersey in the name of “CPS Funding.” In transferring the funds, GLOVER caused fraudulent instructions to be placed into the Company’s operating system to make it appear that the New Jersey bank account was held by an actual customer that was entitled to receive Company funds to settle securities transactions. However, the interstate transfers were not authorized and were not part of any legitimate securities transaction of the Company or its customers. GLOVER then accessed the CPS Funding account and used some of the funds for his own use.
In January 2010, GLOVER was confronted by the Company regarding the fraudulent interstate transfer of funds. He has since returned the stolen funds to the Company.
GLOVER is scheduled to be sentenced by United States District Judge Robert N. Chatigny on September 8, 2011, at which time GLOVER faces a maximum term of imprisonment of 10 years and a fine of up to approximately $1.25 million.
This matter was investigated by the United States Secret Service with the assistance of the victim company. The case is being prosecuted by Senior Litigation Counsel Richard J. Schechter.
Citizens are encouraged to report any financial fraud schemes by calling, toll free, 855-236-9740, or by sending an email to firstname.lastname@example.org.
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