A Minnesota-based financial advisor has found herself in the cross-hairs of authorities after an investigation found she misappropriated clients’ funds to support her real estate business.
Kristi Margaret Berge, 47, is facing wire fraud charges after she purportedly used more than a million dollars that clients entrusted to her.
Berge founded Keep Safe Investments in 2013 and headed the firm as its CEO for 10 years. The US Attorney's office for the District of Minnesota said in a statement that Berge was also a co-owner and operator of J&K Connect, a real estate investment company that’s in the business of buying, renovating, and reselling properties.
Citing court documents, the DOJ said Berge diverted assets meant for investment accounts into personal projects from June 2020 through February 2023.
She misled clients at her financial planning and investment services practice into giving her their money by representing that she would put it into investment accounts such as individual retirement accounts and 401(k) retirement savings plans. But instead of putting it to work for them, Berge repeatedly withdrew her clients’ funds over the nearly three-year period in amounts ranging from $5,000 to $220,000.
After funneling the funds into bank accounts under her control, she allegedly used the funds to buy multiple properties across her home city of Edina, which she then added to her real estate business’s portfolio.
Berge tried to keep her deception under wraps by labeling her withdrawals as “management” or “administrative” fees. She also fabricated records to make it seem as if she had clients’ authorization to withdraw money from their investment accounts.
But the bottom eventually fell out from under Berge after an investigation by the FBI uncovered her embezzlement.
Berge is scheduled to make her initial appearance before U.S. District Court Judge Eric Tostrud on March 7.
Blue Anchor Capital Management and Pickett also purchased “highly aggressive and volatile” securities, according to the order.
Reshuffle provides strong indication of where the regulator's priorities now lie.
Goldman Sachs Asset Management report reveals sharpened focus on annuities.
Ahead of Father's Day, InvestmentNews speaks with Andrew Crowell.
Cerulli research finds nearly two-thirds of active retirement plan participants are unadvised, opening a potential engagement opportunity.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today’s choppy market waters, says Myles Lambert, Brighthouse Financial.
How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave
