A federal judge sentenced a Florida man to prison in connection with a scheme in which he defrauded a client out of over $2 million, according to Financial Advisor.
43-year-old Eric James Stone was sentenced by U.S. District Judge Jordan E. Pratt to six years and eight months behind bars. Stone, a former Fidelity Investments representative in St. Augustine, was also ordered to pay $2,037,103 in restitution to his victim.
The U.S. Attorney’s Office for the Middle District of Florida said that Stone used his position as a financial advisor to befriend the client, a 75-year-old Maryland woman, in order to solicit money from her. The activity began in 2021 when he asked for a $30,000 loan.
Stone then began asking her send money for fake fines and attorney fees related to the original loan. According to the indictment, he also prompted the victim to open bank and other financial accounts for the purpose of transferring funds to him.
The scheme continued over a three-year period, during which prosecutors said Stone convinced the victim to make over 600 transactions, sending him money that amounted to over $2 million. To convince the client to send him money, Stone sent fraudulent emails from purported attorneys, banks, and other internet websites. He spent most of the money on foreign gambling websites, the U.S. Attorney’s Office said.
“Our seniors are among our nation’s most vulnerable population and must be protected,” said U.S. Attorney Gregory W. Kehoe. “The defendant in this case used his position of trust to deliberately deceive and exploit the victim for his own personal gain. For that, he will be punished for his crimes.”
“Stealing $2 million isn’t just a financial crime, it’s a betrayal of trust that has life-altering consequences for a victim long after the crime is committed,” said FBI Jacksonville Special Agent in Charge Jason Carley. “This sentence sends a clear message: fraudsters who think they can lie and steal will face the consequences of their actions.”
Stone pleaded guilty in March to wire fraud and money laundering charges.
Fidelity fired Stone over his solicitation of loans from clients, and records show he was later barred by the Financial Industry Regulatory Authority for failing to produce documents related to his termination.
Hyman Cotter routinely represents investors harmed when financial professionals and their firms engaged in misconduct that caused their clients investment losses. Our team includes lawyers who have worked for large financial institutions, including Morgan Stanley and UBS Financial Services, and regulatory bodies such as the SEC. If you think your financial professional or firm engaged in misconduct that caused you investment losses, contact Hyman Cotter at (833) 665-0784 or through our online contact form for a no-cost evaluation of your matter.
