Former Investment Advisor Sentenced for Fraud and Perjury
For Immediate Release
U.S. Attorney's Office, District of Massachusetts
BOSTON – A former investment advisor was sentenced yesterday in federal court in Boston for deceiving his former clients concerning the management of their retirement savings as well as lying to the U.S. Securities and Exchange Commission (SEC).
Richard G. Cody, 44, of Jacksonville, Fla., was sentenced by U.S. District Court Judge F. Dennis Saylor IV to two years in prison and two years of supervised release. Cody was also ordered to pay a fine of $30,000. In November 2018, Cody pleaded guilty to one count of violating the Investment Advisors Act of 1940 and two counts of making a false declaration in a court proceeding.
From May 2005 to August 2016, Cody acted as an investment advisor and managed the retirement savings of three victims, including two in Massachusetts. Cody falsely assured the victims that their retirement savings were secure, when in fact he knew they were not. Contrary to his fraudulent assurances, by 2014, the total value of their retirement savings had substantially diminished, and the retirement savings of two victims were entirely gone. In order to conceal these losses, Cody provided the victims with fraudulent account statements and tax documents. In addition, Cody failed to inform his victims that regulators had suspended him in 2013 from acting as an investment advisor.
In addition, Cody lied to the SEC during a March 2017 sworn deposition in connection with a civil enforcement action the SEC had filed against him in December 2016. Cody made false declarations regarding fraudulent documents that he denied giving to two victims of the scheme.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The U.S. Attorney’s Office would also like to acknowledge the assistance of the U.S. Securities and Exchange Commission. Assistant U.S. Attorney Neil J. Gallagher Jr. and Elysa Wan of Lelling’s Criminal Division is prosecuting the case.
Updated March 7, 2019
Securities, Commodities, & Investment Fraud