Massachusetts rep charged with $30 million fraud

A Wilbraham, Mass., adviser is the subject of an administrative complaint filed today by Secretary of State William Galvin, who is charging him with fraudulently taking more than $3 million from his clients.

The complaint, filed against Sean Edward Mansfield and his company, RCI Management LLC of West Springfield, Mass., alleges that he used the money for personal expenses ranging from services at a hot tub establishment to a down payment on a $30 million beachfront property in Puerto Rico.

Mr. Galvin is seeking to revoke permanently Mr. Mansfield’s registration as a rep and impose an administrative fine.

The alleged fraud was discovered by Mr. Mansfield’s former employer, Financial Counselors LLC of West Springfield, where he worked from October 2002 until March 13.

The complaint charges that he transferred more than $3 million from 13 brokerage accounts of his clients by using forged signatures.

Last year, Mr. Mansfield incorporated RCI Management and allegedly represented it as a hedge fund. He subsequently transferred some of a client’s money into the RCI account.