A Connecticut financial advisor and securities broker admitted to misappropriating $575,000 from investment clients during a seven-year scheme.
Lester Burroughs, 60, of Torrington, pleaded guilty on Wednesday, Dec. 4 in Bridgeport district court to one count of wire fraud while he was the owner of Burroughs Financial Group in Torrington.
Between 2012 and November this year, Burroughs, who was a registered securities broker with the Financial Industry Regulatory Authority misrepresented to clients that their money would be invested in legitimate, guaranteed investment contracts.
Instead, Burroughs admitted to using his clients’ money to pay business expenses and other clients’ “guaranteed” investment returns. Through the scheme, he defrauded three clients out of approximately $575,000.
Burroughs remains released on a $100,000 bond pending his sentencing, which is not sentenced. When sentenced, Burroughs faces up to 20 years in prison. As part of his plea, Burroughs also agreed to pay $575,000 in restitution to his victims.
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