Ex-financial planner convicted of fraud
Posted January 30, 2020 4:13 pm.
This article is more than 5 years old.
A former Pennsylvania financial planner accused of falsifying his clients’ net worth to put them into high-risk investments was convicted of fraud Thursday.
Anthony Diaz, who was fired from five brokerage firms and finally kicked out of the securities industry for good over persistent customer complaints and rules infractions, was convicted on all 11 counts of wire and mail fraud. Each count carries a maximum 20-year prison sentence.
Diaz, who was based in the Pocono Mountains, made millions of dollars selling high-risk, high-fee “alternative investments.” Prosecutors told a federal jury in Scranton that he had unsuspecting customers sign blank documents, then falsified their net worth, income, investment experience and risk tolerance to make it appear they met the suitability requirements of the products.
Former customers testified that Diaz guaranteed them high returns while failing to explain they could lose their principal.
Diaz acknowledged that paperwork was filled out incorrectly but denied criminal intent. He said the investments he sold were vetted and approved by the brokerages he worked with, and insisted he fully explained the risks to his clients.
The Associated Press
