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

Texas man says SEC and fund could make him pay twice
Texas man says SEC and fund could make him pay twice

A $141M judgment and a federal asset freeze collide over one shrinking pool

Osaic executives Kristy Britt and Greg Cornick to leave
Osaic executives Kristy Britt and Greg Cornick to leave

The firm's CFO and EVP of Wealth Management Solutions are the latest executives to exit the broker-dealer.

Estate planning becomes a client retention issue for financial advisors, survey finds
Estate planning becomes a client retention issue for financial advisors, survey finds

Clients are saying they would consider switching advisors if another professional offered estate planning services, according to a new Trust & Will survey.

Candidly adds AI agents for Trump Accounts, workplace benefits
Candidly adds AI agents for Trump Accounts, workplace benefits

CEO Laurel Taylor says the fintech's composable AI stack helps workers optimize dollars across Trump Accounts, 529s, 401(k)s, and other employee benefits.

BMO adds three advisors in Dallas amid Y'all Street wealth boom
BMO adds three advisors in Dallas amid Y'all Street wealth boom

The bank has swiped three private banking veterans from BNY as the city climbs the ranks of America's fastest-growing wealth hubs.

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income

SPONSORED Why direct indexing stopped being optional

Direct indexing is on pace to outgrow ETFs and mutual funds. Northern Trust's Ken Lassner explains why the advisors who get it wish they had started sooner.