A former Wells Fargo adviser, who was barred from the industry in 2015, is facing felony embezzlement charges for allegedly stealing more than $500,000 from a trust fund he was overseeing.
David Homan of Saginaw, Mich., could face up to 15 years in prison if convicted of misappropriating $513,211 from a trust fund between 2009 and 2014, according to a report published by MLive.com.
Mr. Homan, 68, who resigned from Wells Fargo in April 2014, is accused of abusing his position as trustee for two elderly clients, sisters Elizabeth and Frances Stafford.
The case, which was resolved in civil court in 2014, claims that Mr. Homan became co-trustee of the fund in 2003 and became sole trustee when Elizabeth Stafford died in 2009 at age 93, at which time the fund was reportedly worth $516,000.
After Frances Stafford died in 2013 at age 84, and a third sister, Louise Larsen, died in 2014 at age 92, the next level of beneficiaries was Ms. Larsen's three daughters. By that point, Mr. Homan had already misappropriated most of the assets in the trust fund.
According to MLive, an independent audit of the trust fund showed that Mr. Homan had electronically transferred money from the fund to his personal banking accounts.
Also, in late 2013, Mr. Homan wrote a check for nearly $35,000 to a local car dealership to purchase a 2014 Chrysler Town & Country, which was registered to his wife.
During the civil suit in 2015, Wells Fargo was charged with failure to recognize issues such as Mr. Homan's having the same address as the trust account.
"At Wells Fargo, we hold our advisers to the highest ethical standards. The adviser involved in the matter is no longer affiliated with Wells Fargo Advisors. He resigned in April of 2014 during our review, and we resolved the matter with the affected client in 2015," the company said in a statement.
Mr. Homan's lawyer did not respond to a request for comment for this story.
The civil suit resulted in a $1.54 million judgment against Mr. Homan.
Mr. Homan, who could not be reached for comment, worked at Wells Fargo from 2009 to 2014, according to Finra BrokerCheck. Prior to Wells Fargo, he worked at UBS Financial Services from 2004 to 2009. Before joining UBS, Mr. Homan worked at Merrill Lynch for 18 years.
Mr. Homan, who was arraigned in Bay City District Court on Aug. 13, is scheduled to appear for a preliminary examination on Aug. 30.