Former Merrill Lynch and Smith Barney investment advisor, Jane O’Brien,
has once again been given time in prison for engaging in almost twenty
years of securities fraud. She has been given an additional 45 months
of jail time.
Originally, on December 12, 2012, O’Brien had pled guilty to one
count of securities fraud. She had sold a client a security that did not
exist and had profited $240,000 because she did not actually invest the money.
Because of the fraud, the former investment advisor was charged with:
- 33 months in prison
- 3 years of supervision upon release
- Owes $240,000 in reparations
Along with the sentencing, O’Brien is also barred from working with
brokers, dealers, as an investment advisor, etc. She was incarcerated
during the time that her conviction was extended.
On April 30, 2015, O’Brien further pled guilty to three counts of
mail fraud, two counts of wire fraud, and two counts of investment adviser
fraud. She had been defrauding investors for over twenty years, between
1995 and 2013. Often times, the former investor would lie to unsuspecting
clients, reassuring them of investment plans, while not pursing those
commitments. With one client, O’Brien advised them to withdraw the
full sum of their Smith Barney account and borrow an additional $1 million
dollars to invest in a company she thought was ideal.
Unfortunately, O’Brien did not actually invest her client’s
money. Instead, she used it to fund her personal lifestyle, offer older
clients lulling payments, and use the money to pay back personal loans.
The investors never saw their money get invested.
O’Brien was given additional prison time for her two-decade fraud
scheme. On August 7, 2015, Judge Nathanial M. Gorton extended her sentencing.
O’Brien’s new sentence includes:
- 45 months in jail
- 2 years of supervision after release
- $825,000 in restitution to victims