Arizona grand jury indicts ex-investment adviser for fraud
By The Associated Press
(Source: Arizona Attorney General's Office)
PHOENIX (AP) -
An Arizona grand jury has indicted a former investment adviser who allegedly misappropriated more than $800,000 of his client's funds.
The state Attorney General's Office says 57-year-old Richard Mark Schmerman is facing charges of fraudulent schemes and artifices, theft, forgery and criminal impersonation.
“I am pleased with the success from both agencies,” said Arizona Corporation Commission Chairman Tom Forese. “I congratulate our Securities Division investigators and the AZ Attorney General’s Office for working together to investigate and prosecute allegations of unscrupulous business practices.”
The Arizona Corporation Commission's Securities Division investigated and referred the case to the AG's Office for prosecution.
Schmerman allegedly used client investment funds to pay personal expenses including a single payment of over $400,000 to a civil judgment issued against him.
According to the indictment, Schmerman impersonated some of his clients to gain access to their investment accounts after his access had been terminated due to allegations he had co-mingled client and personal funds.
The Arizona Corporation Commission revoked Schmerman's license in 2014 and imposed penalties.