Adviser who led double life gets 17 years for $20M fraud

Judge throws the book at adviser who swindled the heirs of gilded-age industrialist Frederick Ayer, Jr.

Mar 24, 2010 @ 11:04 am

By InvestmentNews Staff

A federal judge has sentenced a Massachusetts adviser to more than 17 years in prison for committing a fraud that netted him more than $20 million from the descendants of a 19th-century industrialist and using the money on personal extravagances, including three private jets.

John Doorly, was also ordered Tuesday to pay a $1 million fine for stealing from the Tenens Corp. The company was created to manage trusts for descendants of the late Frederick Ayer Jr., who owned textile mills in nearby Lowell.

A representative for the Ayers family told InvestmentNews last year that Mr. Doorly allegedly used the money to purchases homes for his own family — and mistress — and to support his "double life."

(Read the full story here.)

"Doorly looted this family out of tens of millions of dollars and joins the likes of disgraced money manager [Bernard] Madoff," stated Will Nystrom, an attorney at Boston-based law firm Nystrom Beckman and Paris LLP, in March 2009.

Mr. Doorly's indictment at that time, he continued, "clearly spells out how Doorly led a 'double life' and exploited the trust of his victims"

A 2008 lawsuit by Tenens against its auditors estimated the theft at $57 million.

Mr. Doorly pleaded guilty to mail fraud and money laundering in November.

[The Associated Press contributed to this article.]

0
Comments

What do you think?

View comments

Recommended next

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