Two Investment Fraud Scams Spell Prison for Milton Financial Advisor
Milton Financial Adviser Headed to Prison for Stealing Millions in Two Separate Fraud Schemes - And His Own Church Was One of the Largest Investment Fraud Victims
A Milton financial adviser is headed to prison for defrauding customers and investors out of millions of dollars in two separate fraud schemes.
According to the U.S. Attorney’s Office for the District of Massachusetts,Arnett L. Waters, owner of A.L. Waters Capital, sold $839,000 worth of units in sham investment partnerships to at least eight investors from 2007 through 2012. His own church, Faith Lutheran Church in Quincy, was one of his largest victims.
Though he spent most of the money on personal and business expenses, Waters lied and said the investments had generated large profits, which the investors would receive in the near future. When federal investigators looked into his activities, Waters lied and said no one had invested in the partnerships.
Starting in 2002, Waters also cheated customers out of millions of dollars by selling them coins at 600% over market value. He also induced some of his customers to pay him hundreds of thousands of dollars more to purportedly broker sales for them.
Federal investigators said Waters conducted more than $8 million in fraudulent transactions over the past ten years.
“The personal nature of this fraud, the effort and calculation necessary to carry it out, and the defendant’s utter disregard for his victims and the law makes this one of the most serious white-collar cases in Massachusetts in recent memory,” said U.S. Attorney Carmen M. Ortiz.
“This crime, while not violent, had a profound and direct impact on the lives of victims who lost life savings, retirement money, funds for college educations, and funds meant for the benefit of the defendant’s own church.”
Waters pleaded guilty to seven counts of securities fraud, six counts of mail fraud, two counts of money laundering, and one count of obstruction of justice on Nov. 29, 2012. On April 25, 2013, United States District Judge Denise J. Casper sentenced him to 17 years in prison, followed by 3 years of supervised release. Waters also was ordered to pay more than $9 million in restitution and forfeiture of ill-gotten gains.
For additional information, read The Patriot Ledger’s article on the Arnett Waters schemes here.