Former Stock Broker Sentenced in Mail Fraud Scheme

MICHAEL SYDNEY WOOTON, age 46, a resident of Metairie, Louisiana, was sentenced today by United States District Judge Martin L.C. Feldman to serve two years (24 months) in federal prison for mail fraud, announced U.S. Attorney Jim Letten. Additionally, Judge Feldman ordered WOOTON to pay restitution totaling $913,773 to the 14 victims in the case. Judge Feldman also ordered the defendant to serve three years of supervised release following the term of imprisonment, during which time the defendant will be under federal supervision and risks additional imprisonment if he violates the terms of the supervision.

According to court documents, WOOTON admitted that from 2006 until 2010, while he was employed as a stock broker for Western International Securities, he falsely represented to his clients that their investments would yield a high rate of return. The defendant further admitted he did not invest into high yielding bonds but directed his clients’ investment proceeds to accounts he controlled and used the accounts for his personal benefit. In order to hide this fact, he created and mailed fraudulent statements to his clients. According to the factual basis, WOOTON stole approximately $913,773 from 14 clients.

WOOTON was charged by bill of information on January 28, 2011 and pled guilty on March 30, 2011.

The case was investigated by the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Carter K.D. Guice, Jr.