TALK RADIO FINANCIAL ADVISOR SENTENCED TOSEVEN YEARS IN FEDERAL PRISON FOR DEFRAUDING CUSTOMERS
BOSTON, Mass. - A Quincy financial advisor who hosted the “Your Money” radio talk show, was sentenced today in federal court for stealing over $3 million from clients, listeners to his radio program and friends.
United States Attorney Carmen M. Ortiz and Warren T. Bamford, Special Agent in Charge of the Federal Bureau of Investigation - Boston Field Division, announced today that GREGG T. RENNIE, 44, of Quincy was sentenced by U.S. District Judge Edward F. Harrington to seven years imprisonment, to be followed by three years of supervised release and order to pay $3,786,685.42 in restitution.
At the earlier plea hearing, the prosecutor told the Court that RENNIE stole almost four million dollars from various victims, including an elderly gentleman who RENNIE had known since his childhood, retirees who invested their retirement savings with RENNIE, and individuals who listened to RENNIE’s radio show. RENNIE’s victims included a church congregation that had invested the funds they had raised to build a new church.
RENNIE solicited his victims to investment in what he described as risk free federal housing certificates with guaranteed rates of return. RENNIE told investors that these investments involved government grants or loans for housing projects, or were otherwise investments in federally subsidized real estate developments. RENNIE persuaded other victims to invest funds in annuity products that he claimed offered guaranteed rates of return.
RENNIE, however, did not invest his victims’ money in the products he described. Rather, he used the funds to pay for his business expenses and, on occasion to make periodic payments to other victims. To conceal his fraud, RENNIE showed some of his victims prospectuses for legitimate investment vehicles from respected investment companies. After his victims had invested, RENNIE sent his victims bogus invoices which appeared to reflect their investments. These documents, however, bore no relation to the actual manner in which RENNIE spent his victims’ money.
United States Attorney Carmen M. Ortiz said, “This sentence should send an important message to those who provide investment advice, that this office is committed to making sure that anyone who commits fraud and abuses their position of trust by preying on vulnerable victims, will receive serious punishment.”
The case was investigated by the Federal Bureau of Investigation with assistance from the United States Securities Exchange Commission. It is being prosecuted by Assistant U.S. Attorney James P. Dowden of Ortiz’s Economic Crimes Unit.