Former Merrill Lynch broker convicted of wire fraud

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.