Feds: Northwest investment adviser stole millions
SEATTLE -- Federal prosecutors say a Kirkland investment advisor stole millions of dollars from at least 20 clients.
Rhonda Breard is scheduled to make an initial appearance in federal court in Seattle on Wednesday afternoon on mail fraud charges.
Prosecutors say Breard, 47, told investors their money would be placed in financial and insurance products, but she instead used it for her own purposes.
Prosecutors say some of the clients had invested with her for 20 years, and some trusted their money with her after hearing her speak about investing at classes at community colleges.
U.S. Attorney Jenny Durkan says investigators are still trying to determine the extent of the fraud. The state Department of Financial Institutions says as many as 25 investors could be out more than $8 million.
"Investigators are still determining the extent of the fraud," Durkan said in a statement. "We are aggressively trying to learn information about her clients and assets, and we want any assets preserved for victims in this case.
"We will ask the court to impose a condition that Ms. Breard not dispose of any assets while the investigation into the full scope of the fraud continues."
Officials said the alleged fraud was discovered in February when an auditor with ING Financial Partners, the broker Breard used to run her transactions, made an unannounced visit to Breard's office.
According to investigators, the auditor asked to see inside a locked cabinet that Breard said contained her personal tax records.
When the cabinet was opened, investigators said, the auditor found files showing that Breard was not actually making investments with her clients' money.
A lawsuit filed Tuesday against Breard claims Breard and another partner forged bogus statements to send to clients.
Suzanne Farason, chief of enforcement for the securities division of the Washington State Department of Financial Institutions, said most of the victims invested in what they thought were mutual funds or annuity products.
"Sometimes they had cashed out another annuity at Rhonda Breard's direction," Farason said. "(Breard) said they would get a better deal."
Farason said many of the victims met Breard through financial seminars held throughout the area.
Prosecutors are asking anyone who invested with Breard to contact the FBI at 206-622-0460.
Rhonda Breard is scheduled to make an initial appearance in federal court in Seattle on Wednesday afternoon on mail fraud charges.
Prosecutors say Breard, 47, told investors their money would be placed in financial and insurance products, but she instead used it for her own purposes.
Prosecutors say some of the clients had invested with her for 20 years, and some trusted their money with her after hearing her speak about investing at classes at community colleges.
U.S. Attorney Jenny Durkan says investigators are still trying to determine the extent of the fraud. The state Department of Financial Institutions says as many as 25 investors could be out more than $8 million.
"Investigators are still determining the extent of the fraud," Durkan said in a statement. "We are aggressively trying to learn information about her clients and assets, and we want any assets preserved for victims in this case.
"We will ask the court to impose a condition that Ms. Breard not dispose of any assets while the investigation into the full scope of the fraud continues."
Officials said the alleged fraud was discovered in February when an auditor with ING Financial Partners, the broker Breard used to run her transactions, made an unannounced visit to Breard's office.
According to investigators, the auditor asked to see inside a locked cabinet that Breard said contained her personal tax records.
When the cabinet was opened, investigators said, the auditor found files showing that Breard was not actually making investments with her clients' money.
A lawsuit filed Tuesday against Breard claims Breard and another partner forged bogus statements to send to clients.
Suzanne Farason, chief of enforcement for the securities division of the Washington State Department of Financial Institutions, said most of the victims invested in what they thought were mutual funds or annuity products.
"Sometimes they had cashed out another annuity at Rhonda Breard's direction," Farason said. "(Breard) said they would get a better deal."
Farason said many of the victims met Breard through financial seminars held throughout the area.
Prosecutors are asking anyone who invested with Breard to contact the FBI at 206-622-0460.
