Torrington Financial Advisor and Securities Broker Admits Misappropriating Client Funds
John H. Durham, United States Attorney for the District of Connecticut, and Brian C. Turner, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that LESTER BURROUGHS, 60, of Torrington, waived his right to be indicted and pleaded guilty yesterday before U.S. District Judge Victor A. Bolden in Bridgeport to one count of wire fraud related to his misappropriation of approximately $575,000 from investment clients.
According to court documents and statements made in court, Burroughs was a registered securities broker with the Financial Industry Regulatory Authority. Prior to November 2019, he was the owner of Burroughs Investment Group, a full-service financial consulting firm based in Torrington. Beginning in at least 2012 and continuing through 2019, Burroughs misrepresented to certain clients that their money would be invested in legitimate guaranteed investment contracts. Instead, he used his clients’ money to pay business expenses and other clients’ “guaranteed” investment returns.
Through this scheme, Burroughs defrauded three clients of a total of approximately $575,000.
When he is sentenced, Burroughs faces a maximum term of imprisonment of 20 years. As part of his plea, he has agreed to pay restitution in the amount of $575,000 to the victims of his crime.
Burroughs is released on a $100,000 bond pending sentencing, which is not yet scheduled.
This matter is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Heather L. Cherry.
The Securities and Exchange Commission has filed related civil charges against Burroughs. (Securities and Exchange Commission v. Lester Burroughs, 3:19-cv-1913).