Investment Adviser Sentenced In Brooklyn Federal Court To 42 Months’ Imprisonment

Earlier today, at the federal courthouse in Brooklyn, Marc Broidy, the founder, Principal, and Chief Executive Officer of Broidy Wealth Advisors, LLC, was sentenced by United States District Judge Eric N. Vitaliano to 42 months’ imprisonment for committing investment adviser fraud, to be followed by three years of supervised release.  The Court also ordered Broidy to pay $1,694,464.00 in restitution to his victims. 

Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence.

According to court filings and facts presented at his guilty plea proceeding, from November 2010 to July 2016, Broidy engaged in a scheme to defraud his clients both by taking $640,000 in management fees to which he was not entitled, and also by stealing more than $865,000 worth of stock held in trusts, over which he was trustee, to repay a client who discovered his fraudulent overbilling scheme.  Broidy used the money he stole to pay for personal expenses such as his home mortgage, overseas travel and car payments.  To cover up his theft, Broidy falsified tax records and invoices, and lied to an accountant for one victim.  When one of the victims discovered Broidy’s theft and demanded repayment, Broidy stole from the trust accounts of another client’s children, over which Broidy was trustee, to make the payments.  Broidy also failed to disclose to his clients, as required by law, that he was receiving commissions from companies whose stock he caused his clients to purchase.

The government’s case is being handled by the Office’s Business and Securities Fraud Section.  Assistant United States Attorney Matthew Amatruda is in charge of the prosecution.  Ms. Rohde thanked the U.S. Securities and Exchange Commission, New York Regional Office (SEC), for their assistance during the investigation.

The Defendant:

MARC BROIDY
Age:  43
Residence: Los Angeles, California

E.D.N.Y. Docket No. 17-CR-64 (ENV)