Former ING adviser, tripped up by surprise audit, could get 8 years for fraud

Federal prosecutors are seeking an eight-year sentence for a Kirkland, Wash., financial adviser who stole more than $12 million from 42 clients. Rhonda Breard is being sentenced this afternoon at U.S. District Court in Seattle. She pleaded guilty in April to one count of mail fraud, admitting that she concealed the theft by mailing the clients fake account statements. In March, she was barred from the securities industry by the Financial Industry Regulatory Authority. She used the money on three expensive homes, travel, jewelry, and more than two dozen vehicles, according to government documents, which she reportedly tried to sell at the end of February, several weeks after she attempted suicide. Ms. Breard was licensed to sell securities through Des Moines, Iowa-based ING Financial Partners — which, during a surprise audit, uncovered a secret set of files Mr. Breard maintained that detailed her misdealings. ING has settled with 16 of Ms. Breard's victims, the Seattle Times reported, citing government documents, adding that the firm is currently in negotiations with other clients who lost money in Ms. Breard's fraud scheme. Breard's attorney has recommended a sentence of about 5½ years, saying she cooperated fully once she was caught.