Michael D. Montgomery, a former stockbroker and investment advisor in the Tacoma, Washington area, pled guilty this week to stealing hundreds of thousands of dollars from an elderly client and the client’s heirs. The theft occurred as part of an investment fraud scheme Montgomery conducted from 2003 to 2007 in Washington.
According to the plea agreement, Montgomery served the elderly client first as his investment advisor and then as the trustee of his revocable living trust. Montgomery also held a power of attorney for the man. While serving in these roles, Montgomery transferred and used $654,600 of his client’s investment funds for his own purposes. He also wrote himself nearly $850,000 in checks from his client’s accounts. Though Montgomery claimed the payments were for services rendered, he failed to explain to either the client or the client’s heirs what the services entailed. He also failed to claim the payments as income on his tax return.
Montgomery lost his Washington licenses in 2009 due to unethical conduct. He now resides in Aspen, Colo. His sentencing date is scheduled for Sept. 21, 2012 in Washington. The length of his prison sentence and the amount of restitution he will be required to pay to the now deceased client’s heirs will be decided at that time.