Financial Advisor Sentenced for Investment Fraud Scheme

Richard G. Frohling, Acting United States Attorney for the Eastern District of Wisconsin, announced that on November 5, 2025, Robert C. Starnes (age: 66) was sentenced to 40 months’ incarceration for an investment fraud scheme that resulted in a loss of more than $3 million to more than a dozen victims.

According to court records, Starnes operated Robert C. Starnes Financial Services in Wauwatosa, holding himself out as a legitimate investment broker and retirement advisor. Over the course of years, Starnes convinced friends, friends of friends, and family members to invest their retirement savings with him. He promised that he would increase the value of their retirement savings through his investment strategies. As part of his scheme, Starnes gave his victims fake statements, showing that their investments were growing. In reality, Starnes accepted checks from his victims and simply deposited them in his personal bank account, where he then used the funds to pay for his own expenses.

At his sentencing hearing, United States District Judge Lynn Adelman noted that Starnes had not invested any funds on behalf of his victims. Judge Adelman also noted that Starnes’s victims were not wealthy, but ordinary, hard-working families.

In addition to the 40-month period of incarceration, Starnes was ordered to pay restitution to his victims in the amount of $3,093,304.17, and to serve a period of 3 years supervised release.

“The sentence in this case takes into account both the significant financial losses caused by the defendant’s scheme and the fact that he abused the trust of his victims,” said Acting U.S. Attorney Frohling. “The United States Attorney’s Office remains committed to working with its federal, state, and local law enforcement partners to pursue justice for victims and to hold those who engage in fraud schemes fully accountable for their actions.”

"Illegal activity involving the investment industry has brought financial ruin to many Americans. IRS Criminal Investigation is proud to bring our forensic accounting skills to this joint venture and help put a stop to this and other types of white-collar crime.", said Special Agent in Charge Adam Jobes of IRS Criminal Investigation. “Today's sentencing demonstrates how law enforcement will work together to help put an end to the criminal behavior of those who prey on investors for their personal financial gain.”

“Defrauding people out of savings for retirement is reprehensible,” said Attorney General Josh Kaul. “Perpetrators of fraud should be held accountable. I’m thankful to those who worked on this case.”

The Wisconsin Department of Justice, Division of Criminal Investigation and the IRS Criminal Investigation investigated the case, and it was prosecuted by Assistant United States Attorney Carter B. Stewart. 

For further information contact:

Public Affairs Officer Steve Caballero                                                                                    

(414) 297-1700

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