Law & Justice

Investment Adviser and Springfield Resident Charged with Stealing Millions from Clients

1fac8d4ad444770b5958_mini_magick20180523-75378-1ga8ctw.jpg
Credits: tapinto.net
1fac8d4ad444770b5958_mini_magick20180523-75378-1ga8ctw.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

Springfield

Three School Buses Involved in Crash at Clark's ALJ High School

June 21, 2018

CLARK, NJ — Three buses collided in the Arthur L. Johnson High School parking lot around noon on Thursday in a chain-reaction crash. 

Students were on board at the time, according to Police Chief Pedro Matos. One driver and two students had minor injuries, Matos said.   

According to a Honeywell alert issued by the Clark Public School District, ...

Get Empowered to Help Prevent Suicide

June 9, 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 ...

Construction Update on Vauxhall Ave. Bridge, Chestnut St. Bridge and Morris Avenue Work

June 19, 2018

UNION, NJ – A CodeRed alert about road construction, the resulting congestion, and what can be expected, was sent to residents Tuesday morning.

The message said the work on these state roads is being performed by the New Jersey Department of Transportation.  The message outlined the following work scheduled for June and July:

The Vauxhall Bridge over Route 22.  Work ...

Shakespeare in the Park Returns to Union County, Sunday, July 8

June 22, 2018

The Union County Board of Chosen Freeholders is pleased to announce the return of Shakespeare in the Park this summer. The first performance will be presented on Sunday, July 8 at 7:00 p.m. at the Raymond Wood Bauer Promenade in Linden.

The Shrew Mechanicals Troupe from The Shakespeare Theatre of New jersey will present an hour long performance of “Powerful Trouble,” a stirring ...

Upcoming Events

Sat, June 23, 10:00 AM

CASA of Morris and Sussex Counties, Morristown

CASA Information Session

Mon, June 25, 7:45 AM

17 Kent Place Boulevard, Summit

Monday Morning Yoga

Health & Wellness