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Adviser Weitzman Arrested In More Than $6M Fraud
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(June 10, 2009 - Wednesday) - http://online.wsj.com/article/BT-CO-20090610-709638.html
NEW YORK (Dow Jones)--Investment adviser Matthew D. Weitzman surrendered to federal authorities Wednesday to face charges he misappropriated more than $6 million in client funds.
According to a criminal complaint unsealed Wednesday, Weitzman, a former principal of AFW Asset Management Inc., has been charged with investment-adviser fraud, six counts of securities fraud and six counts of wire fraud.
Marc Mukasey, a lawyer for Weitzman, declined comment Wednesday.
Prosecutors have alleged Weitzman, between 2005 and March 2009, misappropriated millions of dollars in client funds, lied to investors about how their money was invested and improperly converted investor funds to his own use.
The government claims Weitzman advised clients to sell securities or sold securities on their behalf under false pretenses in order to take the proceeds for himself six times between October 2007 and January 2008.
According to the complaint, about $7.3 million was deposited into an AFW account between July 2005 and March 2009 in which Weitzman had sole signatory authority. More than $6.6 million was withdrawn from that account, including more than $3.89 million to the personal checking account of Weitzman and his wife, prosecutors said.
AFW Asset Management, which does business as AFW Wealth Advisors, had more than $194 million in assets under management at the end of 2008, according to the complaint.
The company has offices in Purchase, N.Y., and Natick, Mass., according to the complaint.
The firm referred calls for comment to its lawyer, who didn't immediately return a phone call seeking comment Wednesday.
The case is being investigated by the U.S. Attorney's office in Manhattan and the Federal Bureau of Investigation.
-By Chad Bray, Dow Jones Newswires; 212-227-2017; chad.bray@dowjones.com
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