An Ooltewah, Tenn., financial adviser has been sentenced to five years in prison and ordered to pay more than $2.7 million in restitution to his former broker-dealer, Ameriprise Financial Inc., after pleading guilty to misappropriating his clients’ money while he worked for the Minneapolis-based firm.
According to a news release from the U.S. Attorney’s Office for the Eastern District of Tennessee, 41-year-old Delbert Foster Blount III pleaded guilty in April 2009 to mail fraud, wire fraud and income tax evasion.
According to the plea agreement, Mr. Blount advised clients to invest money in various accounts and then used the money for himself. When clients wanted their money returned, he would take money from other investors to pay them. He carried out the scheme from June 2000 until December 2006.
Mr. Blount, who worked for Ameriprise from March 1998 until January 2007, was sentenced Monday. He was also sentenced to three years of supervised release.
Mr. Blount deposited customers’ checks into his own bank account, according to the Tennessee Department of Commerce and Insurance. Ameriprise discovered the deposits when an unnamed client complained that they weren’t properly credited. Ameriprise reimbursed customers $2 million.
If you have questions about investments you made with Mr. Blount, The White Law Group may be able to help. For a free consultation, call the firm at 312-238-9650.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida. With over 30 years of securities law experience, including experience working at FINRA (f/k/a the NASD) and the SEC, The White Law Group has the expertise to help investors defrauded in securities, investment and financial business transactions.
For more information on The White Law Group, please visit our website at https://www.whitesecuritieslaw.com.