Financial adviser pleads guilty to theft of more than $1.6 million
Admits to stealing money from a family's trusts that he was managing and using it for personal expenses. (Related read: Massachusetts investment adviser Gregg Caplitz sentenced to prison for fraud, SEC says )
A former financial adviser has pleaded guilty to stealing more than $1.6 million from the beneficiaries of three trusts that he managed, according to a statement from the New York City’s district attorney’s office.
The adviser, Brian Keenan, 60, is expected to be sentenced on December 21, according to the statement.
From approximately May 2007 to August 2012, Mr. Keenan was employed as a financial adviser by Train Babcock Advisors, an investment advisory firm based in Manhattan, N.Y., with $425 million in client assets.
According to the statement, one of Mr. Keenan’s responsibilities was to serve as a trustee, making him responsible for managing trusts and acting in the best interests of the beneficiaries. During this time period, Mr. Keenan stole more than $1.6 million from the beneficiaries of three separate trusts belonging to members of the same family, spending the stolen money on personal expenses, including credit card payments.
Mr. Keenan opened a joint checking account in his name and the name of one of the beneficiaries of the trusts that he was responsible for managing, according to the statement. The beneficiaries had no access to this account. He proceeded to have more than 40 checks issued from the three trust accounts and payable to the joint account that he controlled. The defendant then withdrew the funds as cash or transferred the money to his personal account.
Mr. Keenan could not be reached to comment. John Rogicki, managing director of Train Babcock, did not return a call on Friday to comment.
“A financial adviser’s chief responsibility is to act in the best interest of his or her clients,” said Manhattan district attorney Cyrus R. Vance in a statement. “Instead of abiding by that duty, Brian Keenan took advantage of the victims in this case and stole their money to pay for his own personal expenses. My office is committed to ensuring the integrity of New York’s financial advisory industry and holding accountable those who engage in this type of fraud.”
(See: Abuse of elderly by guardians often takes form of financial exploitation )
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