A former Walnut Creek, California financial adviser for the United Bank
of Switzerland Financial Services, Inc. received a 65-month prison sentence
last Thursday for stealing $5.4 million from his clients, according to
a Sept. 15 FBI press release.
On June 9, Steven Kobayashi, of Livermore, California, pled guilty to one
count of wire fraud and one count of money laundering in connection to
the fraud. In his plea agreement, Kobayashi admitted to fraudulently transferring
approximately $5.4 million in funds from his client's UBS accounts
to his personal bank accounts over a period of approximately three years.
Some of the transfers were made through forged authorization documents.
Last March, the SEC also filed charges against Kobayashi alleging that
the former adviser misappropriated millions in investor funds through
a pooled investment fund that he created. According to the SEC, the fund
was supposed to be used to invest in life insurance polices, but Kobayashi
allegedly stole much of the money and used it to "fund his extravagant
lifestyle." Kobayashi agreed to settle the SEC's charges without
admitting or denying the allegations.
Restitution will be ordered in a court hearing on Oct. 19. For more information,
read the FBI's full release