Law & Justice

Investment Adviser and Springfield Resident Charged with Stealing Millions from Clients

1b20c5804c6a0c7c67ee_846597f98a9b1d81db46_mini_magick20180523-15641-16sxoaq.jpg
1b20c5804c6a0c7c67ee_846597f98a9b1d81db46_mini_magick20180523-15641-16sxoaq.jpg

NEWARK, N.J. – A former broker and investment adviser Gary Basralian, 70, of Springfield, New Jersey was arrested today, Wednesday, for allegedly stealing more than $2.1 million from two clients in order to pay for personal expenses, U.S. Attorney Craig Carpenito announced.

Basralian is charged by complaint with two counts of wire fraud and one count of investment adviser fraud. He was arrested earlier in the day at his home and is scheduled to appear this afternoon before U.S. Magistrate Judge U.S. Magistrate Judge Steven C. Mannion in Newark federal court.

The charges and allegations in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

Sign Up for E-News

According to the complaint:

From 1989 through December 2017, Basralian was registered with an investment adviser and broker dealer referred to in the complaint as “Securities Firm A.”

From August 2007 through November 2017, Basralian, while serving in his capacity as an investment adviser, misappropriated at least $738,000 from a client identified in the complaint as “Victim 1” and at least $1.4 million from a client identified in the complaint as “Victim 2.”

Basralian said he would invest these funds in brokerage accounts at Securities Firm A or in real estate and high-interest loans and manage them on behalf of the victims. However, Basralian used the victims’ money to fund his own personal expenditures, including BMW payments and tens of thousands of dollars in credit card bills.

Victim 1 routinely provided funds to investment accounts managed by Basralian at Securities Firm A.  At Basralian’s direction, Victim 1 eventually began addressing checks to “Masters Financial” based on Basralian‘s representations that the checks would ultimately be deposited into her investment accounts at Securities Firm A. Instead, the funds were deposited into an account controlled by Basralian, which he used for personal expenses.

In 2009, Basralian began wiring funds from Victim 2’s investment account at Securities Firm A into various accounts that he controlled and used the proceeds for his own benefit. When Victim 2 asked why her account at Securities Firm A had diminished in value, Basralian sent her a phony spreadsheet showing that her money was being invested as loans to various companies that would be paid back with interest.

Each of the wire fraud counts carries a maximum potential penalty of 20 years in prison and $250,000 fine, or twice the gross gain or loss from the offense. The investment adviser fraud count carries a maximum potential penalty of five years in prison and a $10,000 fine, or twice the gross gain or loss from the offense.

On May 22, 2018, the New Jersey Bureau of Securities, within the Office of the New Jersey Attorney General, issued a Summary Revocation Order against Basralian that revoked his agent and investment adviser representative registrations.

U.S. Attorney Carpenito credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Ruth M. Mendonca, and Special Agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie, with the investigation leading to today’s charges. He also thanked the New Jersey Bureau of Securities, under the direction of Bureau Chief Christopher Gerold, for its assistance.

The government is represented by Assistant U.S. Attorney Courtney Howard of the U.S. Attorney’s Office Economic Crimes Unit.

Article source:  United States Attorney - District of New Jersey

TAP Into Another Town's News:

You May Also Be Interested In

Sign Up for E-News

Millburn/Short Hills

Video: Scoutmaster Ken Fineran Street Dedication Ceremony

May 21, 2018

MILLBURN, NJ - Millburn Township and Boy Scout Troop 17 of St. Rose of Lima honored the life and accomplishments of late Scoutmaster Kenneth W. Fineran on Sunday, May 20. Troop 17 Scouts, in conjunction with Millburn Township and St. Rose of Lima Church.

Millburn Student's Bike Stolen, Millburn Police Investigating

June 12, 2018

On June 5, 2018 Millburn Police Officer Tavares responded to the Louis Vuitton store at The Mall at Short Hills on a theft report. Louis Vuitton personnel report a black male with dread locks wearing a black t-shirt, red shorts, black leggings, and white/red sneakers took two pairs of sunglasses valued at $870.00 and left the store without making payment. The incident is under investigation by ...

AtlantiCast

AtlantiCast Episode 17

On this week’s AtlantiCast, it’s National Men’s Health Month, so check out important health tips for you or the men in your life, learn about groundbreaking research into breast cancer treatment that could mean an end to chemotherapy for some patients, meet a local sports hero who’s living his baseball dreams thanks to Goryeb Children’s Hospital and much ...

Get Empowered to Help Prevent Suicide

June 12, 2018

Over the past week social media and the news have been filled with stories and articles encouraging people to seek help if they’re in emotional distress. There have been countless articles about the need to break the silence around the topic of mental health and suicide, and I am encouraged by the support people are extending to others.

Often, the death by suicide by prominent ...

Upcoming Events

Carousel_image_5e177eaae57739064cd4_397f63ad2fb50392a776_29178074_2107642336134787_2638697507160326144_n

Sun, June 24, 11:00 AM

Totowa

MakerFest 2018

Wed, June 27, 6:00 PM

Reeves-Reed Arboretum, Summit

Inkubate

Arts & Entertainment Home & Garden

Carousel_image_ebf7aa55086e734989d5_btpffstbh

Thu, June 28, 6:30 PM

The Book House, Millburn

Book to Plate

Food & Drink

Meet Your Local Prosthodontist

June 22, 2018

WEST ORANGE, NJ - Dr. Efterpi (Effie) Zantopoulos Deegan of Deegan Dental received her Certificate of Prosthodontics from University of Medicine and Dentistry of New Jersey (UMDNJ), after attending dental school there as well.  She is an alumnus of Rutgers- Newark College of Arts and Sciences and West Orange High School. Dr. Deegan is half-time faculty at Rutgers School ...

NCJW/Essex Hosts The Five Stages of Career Transition with Motivational Speaker Frederica Peterson

LIVINGSTON, NJ -- On Tuesday, June 12, 2018, Frederica Peterson, Motivational Speaker and Career Coach, MA, CPC, ELI-MP, engaged nearly 50 women at the Linda and Rudy Slucker NCJW/Essex Center for Women about moving forward in one’s career and in life. Peterson examined how many women feel stuck and trapped in negative thoughts, but how with the right mindset it’s possible to ...

Millburn-Short Hills Democratic Committee Looking to Fill District Leader Spots

ESSEX COUNTY, NJ - The Millburn-Short Hills Democratic Committee is stronger than ever and proudly represents itself along with Essex County Executive Joseph Di Vincenzo and newly re-elected Essex County Democratic Chairman LeRoy Jones at the Essex County Democratic Reorganization meeting.

The local committee currently has a record 29 of 32 District Leader spots filled. We have a female ...

Cool Ways to Save Money This Summer

As the summer temperatures rise, home cooling costs rise as well. But there are ways to help save money without sweating the heat:

To increase your cooling system’s efficiency by as much as 20%, get it checked out for summer.  A technician will clean the condenser, make sure you have the optimal amount of refrigerant, and ensure the airflow over the coil is ...