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Massachusetts advisor pleads guilty to defrauding clients out of $3.5 million

On Behalf of | Oct 31, 2022 | Financial Advisor Misconduct

A Massachusetts financial advisor has pleaded guilty to misappropriating millions of dollars of his clients’ funds for his own use, according to InsuranceNewsNet.

55-year-old Steven Xigoros of Lowell was arrested and indicted on the charges by a federal grand jury in September 2021. Prosecutors said Xigoros carried out the fraud between 2015 and 2021, using his position as an accountant, tax preparer and investment advisor to convince clients to entrust their money to him.

He allegedly told them the funds would be used for investments, securities and business ventures, but instead used the money to pay his own expenses that included gambling debts. According to the indictment, he deceived the clients through false statements about how the money would be invested and when it would be paid back.

Xigoros was accused of swindling over $3.5 million from his clients, including an elderly couple who gave him their life savings of $1.3 million to invest. By not reporting the funds as income, the defendant also owed about $1.16 million to the Internal Revenue Service. Authorities said he tried to flee from prosecution while on pre-trial release by attempting to board a flight to Greece, but was arrested at Newark Liberty International Airport.

Xigoros pleaded guilty to two counts of wire fraud, one count of aggravated identity theft, and one count of filing a false tax return. He faces up to 25 years in prison when he is sentenced on Feb. 23, 2023.

At Lewitas Hyman, our attorneys understand the financial and emotional ramifications of investment losses caused by financial professionals and we have experience dealing with a broad range of claims that rise to the level of financial advisor misconduct. If you have suffered investment losses as a result of misconduct by your financial professional or their firms, contact Lewitas Hyman at (888) 655-6002 or through our online contact form for a free consultation.