Former Merrill Lynch broker convicted of wire fraud

Jesse Joseph Holovacko took $255,000 from client IRA claiming to buy bonds.
MAY 02, 2017

A former Merrill Lynch financial adviser in New Jersey was convicted in federal court for defrauding a client out of his retirement savings and using the funds for his own benefit. Acting U.S. Attorney William E. Fitzpatrick said that Jesse Joseph Holovacko, 39, of Sayreville, was convicted Friday of six counts of wire fraud and one count of investment adviser fraud. In 2012, a year after he joined Merrill Lynch, Mr. Holovacko signed a client after a visit to the factory where the client worked. The adviser then transferred the client's pension savings into an IRA, according to a report on East Brunswick (N.J.) Patch. From December 2013 through August 2014, Mr. Holovacko told the client that he would be using retirement account funds to purchase bonds for him and advised the client to transfer funds from the IRA to his bank account and then provide cashier's checks made out to Mr. Holovacko, telling the client that doing so would make it easier to purchase the bonds. Based on these false representations, Mr. Holovacko obtained 18 cashier's checks totaling approximately $255,000, said Mr. Fitzpatrick, who added that Mr. Holovacko deposited the checks to his own bank account and spent all the money. The wire fraud charges on which Mr. Holovacko was convicted each carry a maximum potential penalty of 20 years in prison and a $250,000 fine.

Latest News

WallStreetBets takes on the SEC — and makes a surprisingly sharp case
WallStreetBets takes on the SEC — and makes a surprisingly sharp case

The Reddit trading community's formal comment letter against the proposal is drawing widespread attention across finance and tech circles.

Stratos Wealth Holdings closes 11 acquisitions in push for advisory scale
Stratos Wealth Holdings closes 11 acquisitions in push for advisory scale

RIA aggregator adds $4.8 billion in client assets across seven states as demand grows for alternatives to traditional succession models.

Beyond wealth management: Why the future of advice is becoming more human
Beyond wealth management: Why the future of advice is becoming more human

As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management

Shareholder sues FS KKR Capital board, alleges NAV and dividend cover-up
Shareholder sues FS KKR Capital board, alleges NAV and dividend cover-up

Shareholder targets FS KKR Capital's directors over alleged portfolio valuation and dividend missteps.

UBS loses $1.2 million arbitration claim linked to variable annuities and margin
UBS loses $1.2 million arbitration claim linked to variable annuities and margin

UBS has a history of costly litigation stemming from the sale of volatile investment products.

SPONSORED Beyond wealth management: Why the future of advice is becoming more human

As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management

SPONSORED Durability over scale: What actually defines a great advisory firm

Growth may get the headlines, but in my experience, longevity is earned through structure, culture, and discipline