Assisted Living Loan Leads to Discovery of $ 6 Million Fraud – News


The $ 6 million fraud by a financial advisor in Virginia was uncovered after a client attempting to obtain a bridging loan to cover relocation costs to an assisted living community discovered that the advisor had taken out a loan of $ 800,000 in his name without his consent.

After pleading guilty, Michael Barry Carter, 47, faces a maximum of 20 years in prison for wire fraud and five years for investment adviser fraud. He is expected to be sentenced on November 9.

From at least October 2007 to July 2019, while serving as a financial advisor at an anonymous financial institution based in Tysons Corner, Va., Carter made at least 53 unauthorized wire transfers totaling at least $ 5 million from the accounts of his clients to his personal accounts, according to the Department of Justice. He also admitted to embezzling more than $ 50,000 from a nonprofit sports organization in Loudoun County, Virginia.

Her fraud was discovered when one of her clients and her adult daughter attempted to secure a bridging loan to cover the cost of relocation to an assisted living facility in Florida until the sale of her Maryland home was over. finished. When applying for the loan, they discovered that a loan of $ 800,000 had already been obtained in the woman’s name, without her knowledge or permission.

Carter admitted that he met the woman at her home and unwittingly answered her phone to authorize transactions in an attempt to bypass the multi-factor verification system required to complete transactions.

Carter was fired from the financial institution on July 29, 2019. On an August 2 call with his former employer, he admitted to defrauding five victims over several years, forging their signatures on bank authorization forms, created false financial statements and mailed them. Financial state.

In total, Carter stole at least $ 6.1 million, according to the Justice Department. He allegedly used the money to pay his mortgage, credit card bills, and country club membership fees.

Before being arrested, Cater returned $ 1.8 million to his victims and reimbursed the association for his loss, the Justice Department said. Of the total amount repaid, $ 1.1 million came from transfers made by Carter from other victim accounts. As part of his plea deal, he will have to repay the $ 4.4 million in net proceeds.

The Securities and Exchange Commission has filed related civil proceedings in the case.


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