AG: Man charged with defrauding clients

Описание: GUILDERLAND -- A financial advisor was arraigned Wednesday afternoon on charges of money laundering and grand larceny.

Fred Monroe, Jr., 59, of Queensbury, is accused of running a Ponzi scheme and taking more than $1.2 million from his clients from January 2008 until April 2015.

Monroe worked as Senior Vice President at Capital Financial Planners where he oversaw accounts for more than 100 clients who were nearing retirement. Investigators with the Office of the Attorney General said he used his client list to solicit more than a dozen people for the scheme.

Investigators said Monroe told his victims he would reinvest their retirement money into bonds. Instead, he is accused of giving the money to others in the scheme, buying hotel rooms, airline tickets, mortgage payments and credit card payments.

"Mr. Monroe solicited from clients of Capital Financial to reinvest their money with him. I'm showing at least a dozen victims in this case, only three of which are in the people's complaint," said Philip Apruzzese, New York State Asst. Attorney General.

The three victims listed in the criminal complaint claimed they gave Monroe a combined $1.1 million. One victim said he gave Monroe nearly $678,000.

Investigators said Monroe told investors in the scheme to write checks directly to him, which was then deposited into an account at Glens Falls National Bank and Trust. The money was never invested into bonds.
Monroe entered a plea of not guilty and declined to speak with reporters outside of court.

A message seeking comment at Capital Financial Planners was not immediately returned. Monroe indicated in court he no longer worked at the firm. His biography was removed from the firm's website.
Investigators accuse Monroe of using his firm's office to send investors false documentation of their purchases and statements of their investments.

Financial experts recommend checking your money manager's background with the Financial Industry Regulatory Authority. They also suggested against writing checks directly to the manager.

Monroe is facing nine felony charges that could put him in state prison for up to 25 years. He is being held at the Albany County Jail on a $300,000 bail.