Houston RIA charged in $1.9M elder swindle gets five years

Texas regulators say Lawrence DeShetler bilked five clients, two of whom were in their 80s

Nov 2, 2017 @ 5:25 pm

By InvestmentNews

A federal judge in Texas sentenced state registered investment adviser Lawrence Allen DeShetler to 60 months in prison and ordered him to pay restitution of $948,058 for defrauding clients of $1.9 million.

After an investigation by the Texas State Securities Board, Mr. DeShetler pleaded guilty in June to federal mail fraud charges. The state found that the RIA, based in The Woodlands, had convinced five elderly clients — two of whom were in their 80s — to cash out legitimate investments and transfer the money to him so he could get them higher returns. Instead, he deposited the money into bank accounts over which he had sole authority.

More: Ex-Merrill broker Thomas J. Buck pleads guilty to securities fraud

Before the restitution order, local and federal law enforcement authorities seized Mr. DeShetler's bank accounts and took other steps to return approximately $857,000 to investors, Texas securities regulators said in a release.

Regulators said Mr. DeShetler spent some of the money he took from clients on run-of-the-mill expenses like restaurant and bar tabs, country club fees, clothes, and pool cleaning services. He also used some of the funds to make a down payment to begin construction on a house in Nicaragua.

0
Comments

What do you think?

View comments

Recommended for you

Featured video

INTV

How men and women think differently about philanthropy

Women are more emotionally connected to their gifts, and want to donate time as well, says special projects editor Liz Skinner.

Latest news & opinion

The power of philanthrophy shifts to women, and advisers are taking notice

Philanthropic women are growing in number — and stature.

Cetera brokers may go elsewhere with no stay bonuses on horizon

Some may feel spurned and leave, while others will simply shrug off latest slight and stay.

Fidelity backs away from being 'point in time' fiduciary for 401(k) plans

Some advisers think this indicates other providers will pivot in light of DOL fiduciary rule's death.

Morgan Stanley CEO is happy that brokers are staying put

Firm has seen little attrition since it dumped the broker protocol last fall, Gorman says.

Bills to reform adviser regulation, increase sophisticated investors and protect seniors pass House

Measures included in package of 32 bipartisan bills meant to ease rules, spur investment

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print