On April 15th, a New Jersey investment adviser was sentenced to federal prison for misappropriating $600,000 of his client’s savings. The adviser, Michael J. Stavola, had been charged with wire fraud and money laundering in connection with the theft of the funds.
Stavola, who had been a financial adviser since 2011, was accused of misappropriating funds from a client’s retirement account in order to pay for his own personal expenses. According to the U.S. Attorney’s Office, Stavola had used the money to pay for vacations, luxury cars, and other personal items.
Stavola had been employed by a financial services firm in New Jersey. He had been responsible for managing the investments of his clients, including the retirement account of the victim in this case.
The U.S. Attorney’s Office alleged that Stavola had used the victim’s retirement account to transfer funds from the account to his own personal bank accounts. He then used the funds to pay for his own personal expenses.
In addition to the federal prison sentence, Stavola was also ordered to pay $600,000 in restitution to the victim. He was also ordered to forfeit any assets that he had acquired with the stolen funds.
The case serves as a reminder of the importance of working with a reputable financial adviser. It is important to do your research before selecting an adviser and make sure that they are properly licensed and have a good track record. It is also important to be aware of any red flags that may indicate that an adviser is not trustworthy or is engaging in fraudulent activities.
It is also important to be aware of your rights as an investor. The U.S. Securities and Exchange Commission (SEC) provides investors with a variety of resources to help them protect their investments and avoid fraud. These resources include information about how to select a financial adviser and how to spot potential fraud.
Investors should also be aware of their rights under the Investment Advisers Act of 1940. This law provides investors with certain protections, including the right to receive copies of all documents related to their investments and the right to receive prompt notification of any changes in their investments.
Finally, investors should be aware of their rights under state law. In New Jersey, investors have certain rights under the New Jersey Uniform Securities Law. This law provides investors with certain protections, including the right to receive copies of all documents related to their investments and the right to receive prompt notification of any changes in their investments.
The case of Michael J. Stavola serves as a reminder of the importance of working with a reputable financial adviser and being aware of your rights as an investor. It is also important to be aware of any red flags that may indicate that an adviser is not trustworthy or is engaging in fraudulent activities. By taking these steps, investors can help protect their savings and avoid becoming victims of investment fraud.