Scott Newsholme, Formerly Licensed Financial Advisor Pleads Guilty to Wire Fraud and Aggravated Identity Theft | Goodman & Nekvasil P.A. May Recover Investor Losses

Goodman & Nekvasil P.A. May Recover Investor Losses | Scott Newsholme, Formerly Licensed Financial Advisor Pleads Guilty to Wire Fraud and Aggravated Identity Theft 

SEC Charges Scott Newsholme Pleads Guilty to Wire Fraud and Aggravated Identity Theft

Scott Newsholme, 43, pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to a three-count information charging him with wire fraud, aggravated identity theft, and preparing fraudulent tax returns.  

According to the U.S. Attorney’s Office, in September 2017, Newsholme was charged by criminal complaint with mail fraud, wire fraud, and securities fraud, and was released on bail. According to the U.S. Attorney’s Office, in October 2017, after law enforcement discovered that Scott Newsholme continued his fraudulent scheme while out on bail, Scott Newsholme was charged in an amended criminal complaint with mail fraud, wire fraud, securities fraud, and aggravated identity theft.

According to the U.S. Attorney’s Office, since 2002, Scott Newsholme owned and operated at least three different financial advisory and tax return preparation businesses including MVP Financial LLC, Newley Financial Group, Inc. and Newsholme Financial Center LLC. According to the U.S. Attorney’s Office, between 2007 and 2017, Scott Newsholme recommended to multiple clients that they invest their money with him, which Scott Newsholme would use on their behalf to invest in various securities and other investments, including bond instruments issued by a private New Jersey country club, a bond investment in a video-game production company, and investments in the production of a movie. 

According to the U.S. Attorney’s Office, Scott Newsholme also represented to clients that he would invest their money in more traditional securities, including mutual funds, annuities, life insurance policies, college education accounts, money market funds, and an escrow account for the purchase of a house. According to the U.S. Attorney’s Office, Scott Newsholme directed his investment clients to write checks to him or one of his companies so that he could execute the investments on their behalf. 

However, according to the U.S. Attorney’s Office, rather than invest the money as he represented, Scott Newsholme cashed or deposited the checks and used the funds for personal expenses, including multiple vehicles, bedroom furniture, debits at casinos, bank transfers to Scott Newsholme’s personal bank accounts, and ATM withdrawals. 

According to the U.S. Attorney’s Office, Scott Newsholme concealed his scheme by diverting incoming investment funds to pay other clients who had requested to withdraw funds from their investment portfolios. According to the U.S. Attorney’s Office, Scott Newsholme also provided his clients phony account statements, security instruments, and other documentation that falsely represented to the clients the status of their investments. 

In October 2017, in furtherance of the scheme, according to the U.S. Attorney’s Office, Scott Newsholme provided a letter to one of his investment clients from whom Scott Newsholme had misappropriated approximately $62,000. The letter, which Scott Newsholme represented had been prepared by an attorney, stated that the client’s funds were held safely in an escrow account established by the attorney. According to the U.S. Attorney’s Office however, as Scott Newsholme admitted, Scott Newsholme fabricated the letter and forged the attorney’s signature without the attorney’s authorization in order to conceal Scott Newsholme’s misappropriation of the funds.

According to the U.S. Attorney’s Office, during the scheme, Scott Newsholme misappropriated more than $3.1 million from Scott Newsholme’s investment clients, resulting in net investment losses of more than $1.8 million.

According to the U.S. Attorney’s Office, in addition to the wire fraud and aggravated identity theft charges, Scott Newsholme also admitted preparing fraudulent tax returns on behalf of his clients. According to the U.S. Attorney’s Office, the fraudulent returns that Scott Newsholme prepared claimed inflated deductions for unreimbursed employee business expenses, charitable donations, and medical expenses to which his clients were not entitled.

Investors with Scott Newsholme May Recover Investment Losses

If you invested with Scott Newsholme, Goodman & Nekvasil, P.A. may help you. Goodman & Nekvasil, P.A., a Clearwater, Florida, law firm with a national practice representing victimized investors, has recovered more than $180 million dollars on behalf of victimized investors. 

All our cases are handled on a purely contingency fee basis by Kalju Nekvasil, Esq., formerly regional counsel with the NASD, now known as FINRA. Kalju Nekvasil, Esq. has practiced in this area of the law for more than 35 years. 

There is no charge for an evaluation of your case. Further, we handle our cases on a contingency fee basis. This means that unless we recover money for you, we charge no attorney’s fee. Unless you recover any money, you pay us nothing, not even the costs and expenses which the firm will advance on your behalf.

If you incurred investment losses with Scott Newsholme and would like your case evaluated by a securities attorney (again, there is no charge for an evaluation and all cases are handled on a purely contingency fee basis), please contact us.

 

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