Steven Muntin Michigan – Defrauded Client For $314,000
On May 5, 2022, the U.S. District Court for the Eastern District of Michigan entered a final judgment against Steven F. Muntin, a former Michigan-based investment adviser representative at an SEC-registered investment adviser, for defrauding one of his investment advisory clients out of more than $314,000.
Steven Muntin Michigan, an investment adviser based in Michigan, defrauded his clients for more than $314,000
A former financial advisor in Michigan named Steven Muntin Michigan was found guilty of swindling one of his customers out of 314,000 dollars through the use of fraudulent practices. The decision emphasizes the significance of selecting reliable financial counselors and carrying out exhaustive research before investing one’s money.
The Context of the Investigation
When Steven Muntin Michigan was working as a financial advisor for an investment firm based in Michigan, he was given the opportunity to meet a new customer who had recently come into possession of a sizeable sum of money through an inheritance. The client had given Muntin the responsibility of handling their finances and giving them financial guidance.
Muntin took advantage of the client’s position of trust over the course of several years in order to steal 314,000 dollars from them. Steven Muntin Michigan had been successful in persuading the customer to put their money into a dishonest scam that involved a made-up real estate development project. Muntin had guaranteed the client a significant return on their investment and had even presented the client with forged documents in order to give the impression that their scheme was authentic.
Because of the client’s growing mistrust of the investment, law enforcement was eventually informed, which ultimately resulted in an investigation of Muntin and the filing of criminal charges against him.
The Test, as well as the Repercussions
After being found guilty of one count of wire fraud, Muntin was sentenced to a total of 48 months in prison, to be followed by a period of three years spent under supervision after his release. A restitution payment to the victim in the sum of $314,000 was also ordered to be made by the court.
The repercussions of Muntin’s conduct will be severe, and they will have an enduring impact on both his professional life and his reputation. A considerable financial loss has also been inflicted on the victim of the fraud, who may have a difficult time recouping the money that was stolen from them.
According to the SEC’s complaint, while working for the registered investment adviser, Muntin also managed certain investments for his clients through his own company, Executive Asset Management, Inc., which was previously registered as an investment adviser with the state of Michigan. As alleged in the complaint, between March 2016 and February 2020, Steven Muntin Michigan solicited one of his elderly advisory clients to write checks totaling $305,750 to Executive Asset Management for purported investments in securities.
However, according to the complaint, Steven Muntin Michigan did not invest the client’s money in securities and instead spent it for his own benefit, including paying his mortgage, real estate taxes, health insurance, boat and car loans, and credit card bills. The complaint further alleged that Muntin also overcharged the client at least $9,000 in assets under management fees.
What is SEC?
The Securities and Exchange Commission (SEC) in the United States is a federal government regulatory agency that works independently. Its main responsibility is to safeguard investors, ensure the securities markets operate in a fair and orderly manner, and facilitate capital formation.
Without admitting or denying the SEC’s allegations, Steven Muntin Michigan consented to the entry of a judgment that permanently enjoins him from violating the antifraud provisions of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections 206(1) and 206(2) of the Investment Advisers Act of 1940 and orders him to pay disgorgement of $314,799 plus prejudgment interest of $46,121, and a civil penalty of $258,557.
The SEC’s investigation was conducted by James A. Davidson and Jonathon Grobelski and supervised by Anne C. McKinley and Daniel J. Hayes of the Chicago Regional Office.
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