News and Press Releases

FORMER INVESTMENT ADVISOR SENTENCED TO THREE YEARS
IN PRISON FOR STEALING MORE THAN $233,000 FROM CLIENTS

FOR IMMEDIATE RELEASE
May 15, 2012

David B. Fein, United States Attorney for the District of Connecticut, today announced that MICHAEL BRADY, 37, of Newington, formerly of Bolton, was sentenced today by United States District Judge Janet Bond Arterton in New Haven to 36 months of imprisonment, followed by three years of supervised release, for stealing more than $233,000 from clients of his investment business.
           
“This defendant, a former licensed investment advisor, methodically stole nearly $200,000 from his clients’ retirement accounts,” stated U.S. Attorney Fein.  “Then, after being informed that he was under federal investigation for that scheme, he brazenly stole additional funds from other clients.  I commend the FBI, U.S. Postal Inspection Service, Connecticut’s Department of Banking and all of the members of the Connecticut Securities, Commodities and Investor Fraud Task Force, who are working every day to uncover fraud in the marketplace and root out fraudsters who steal individuals’ hard-earned funds.”

According to court documents and statements made in court, from approximately 2008 to 2010, Brady was a licensed investment advisor for a financial services firm and solicited client funds for investment.  During that time, Brady stole approximately $194,000 that was entrusted to him by four individuals, who believed they were investing in their own retirement accounts.  In an effort to cover up this scheme, Brady prepared fraudulent account statements and mailed these statements to victims in order to make it appear that the money was actually invested legitimately.  Upon discovering the fraud in 2010, Brady’s employer terminated him and has since reimbursed his victims.

Although Brady was notified in January 2011 that he was under federal investigation for defrauding his clients, between January and September 2011, he engaged in a separate fraud scheme in which he stole more than $38,000 in funds that had been invested by 16 employees in a 401(k) plan at an optometry practice in Prospect.

On December 15, 2011, Brady pleaded guilty to count of mail fraud.

Today, Judge Arterton ordered Brady to make restitution in the total amount of $233,919.09.  Prior to his sentencing, Brady made restitution payments of approximately $97,000.

This matter was investigated by the Federal Bureau of Investigation and the U.S. Postal Inspection Service, with the assistance of the State of Connecticut Department of Banking.  The case was prosecuted by Assistant United States Attorney Susan L. Wines.

In December 2010, the U.S. Attorney’s Office and several law enforcement and regulatory partners announced the formation of the Connecticut Securities, Commodities and Investor Fraud Task Force, which is investigating matters relating to insider trading, market manipulation, Ponzi schemes, investor fraud, financial statement fraud, violations of the Foreign Corrupt Practices Act, and embezzlement.  The Task Force includes representatives from the U.S. Attorney’s Office; Federal Bureau of Investigation; Internal Revenue Service – Criminal Investigation; U.S. Secret Service; U.S. Postal Inspection Service; U.S. Department of Justice’s Criminal Division, Fraud Section and Antitrust Division; U.S. Securities and Exchange Commission (SEC); U.S. Commodity Futures Trading Commission (CFTC); Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP); Office of the Chief State’s Attorney; State of Connecticut Department of Banking; Greenwich Police Department and Stamford Police Department.

Citizens are encouraged to report any financial fraud schemes by calling, toll free, 855-236-9740, or by sending an email to ctsecuritiesfraud@ic.fbi.gov.

This case was brought in coordination with the President’s Financial Fraud Enforcement Task Force, which was established to wage an aggressive and coordinated effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources.  The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.

To report financial fraud crimes, and to learn more about the President’s Financial Fraud Enforcement Task Force, please visit www.stopfraud.gov.

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
thomas.carson@usdoj.gov

 

 

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