Tax Preparer Stole Over $1M From Clients

Chris Gaetano
Published Date:
Sep 7, 2017

The Securities and Exchange Commission has filed a complaint against a NJ-based tax preparer and investment adviser for stealing more than $1 million from clients in order to support his gambling habit and other personal expenses. The SEC said that the man, Scott Newsholme of Farmingdale, NJ, convinced his clients to seek his financial planning advice and give him their money to invest in various securities. To do so he would show them fabricated account statements, doctored stock certificates, and forged promissory notes. Once clients gave him a check, he would cash it at a check-cashing store and pocket the funds directly, all the while telling them that their assets were safe and flourishing. The cash was, instead, used to gamble in Atlantic City as well as pay for other personal expenses. When clients would ask for their money back, the SEC said he engaged in a Ponzi-like scheme to pay them back. 

“As alleged in our complaint, Newsholme repaid his clients’ trust with betrayal,” said Andrew M. Calamari, Director of the SEC’s New York Regional Office. 

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