Published On: April 20, 2016

A former investment advisor, Michael Donnelly, was sentenced to 99 months in prison after running a scam that defrauded elderly and unsophisticated clients out of $2 million. Donnelly allegedly spent the money on car payments, private school tuition for his children and other personal expenses. The civil charges were settled with the Securities and Exchange Commission (SEC) last October and Donnelly agreed to pay back the $2 million he stole. He had been banned for a lifetime from the securities industry previously. A federal judge in Philadelphia then sentenced him to 99 months in prison to be followed by three years of supervised release after accepting his guilty plea to one count of wire fraud and one count of securities fraud. Donnelly had been president of Coastal Investment Advisors of Wilmington, Delaware, and Coastal Equities, an affiliated broker-dealer during the period of the fraud. He also held top roles at the RIAs Donnelly Steen & Company and Donnelly Advisors Group. He siphoned elderly client funds and then issued bogus account statements and trade confirmations to cover the theft. He allegedly ran the scheme from November 2007 until 2014. The complaint against him also claimed he made presentations before elderly investors, promising them that he could net them better interest rates than what banks were paying.

Disclaimer

The posting on this site are mere OPINIONS and NOT statements of fact in any way whatsoever. The information should not be relied upon and there have been no findings made against the firms or individuals referenced on this site. In addition, this Blog is made available for educational purposes only and incorporates information from the web as well as to give you general information and a general understanding of the law, not to provide specific legal advice. By using this blog site you understand that there is no attorney client relationship between you and Stoltmann Law Offices (161 N Clark Street 16th Floor Chicago, IL 60601). The Blog opinions should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.

PLEASE NOTE THIS IS ADVERTISING AND IT IS NOT A NEWSPAPER ARTICLE OR POST FROM AN INDEPENDENT OR NON-BIASED, NEWS SITE, NEWS SOURCE OR NEWSPAPER.

Chicago Investment Fraud Attorneys Offering Nationwide Representation to Investors

If you have suffered financial losses because of the negligence or fraud of your financial advisor or broker through unsuitable investment recommendations, over-concentration, churning, misrepresenting risks, conversion or selling away, you have legal rights and options to pursue recovery of those losses.

Stoltman Law Securities and Investment Fraud Attorneys