Vienna Investment Adviser Sentenced to 10 Years in Prison
ALEXANDRIA, VA—A former investment advisor employed by the Naval Research Lab Federal Credit Union, Raymond James Financial Services, and Apple Federal Credit Union was sentenced today to 126 months in prison, two years of supervised release, and ordered to pay over $2.97 million in restitution.
Ismail Elmas, 49, of Vienna, Virginia, defrauded his own investment advisory clients—many of whom were elderly and had placed their complete financial trust in him—of more than $3 million. Elmas pleaded guilty to one count of wire fraud on October 21, 2014.
According to court documents, Elmas worked as an investment advisor from early 2008 through approximately mid-2014. Elmas would misappropriate client funds given to him for legitimate investments and use those funds for his own purposes by way of an account at Navy Federal Credit Union in the name of “I.E. Financial Solutions.” Elmas misappropriated these client funds in several different ways. For instance, Elmas always materially withheld the fact that I.E. Financial Solutions was his own enterprise—not a separate, independent investment vehicle. For some clients, Elmas falsely described I.E. Financial Solutions as a particular type of investment (e.g., a Certificate of Deposit or a Real Estate Investment Trust), when in reality it was simply the name associated with a bank account that he operated. Still for other clients, Elmas illegally transferred the funds to his I.E. Financial Solutions account without providing truthful disclosures about the use and disposition of the funds. All told, Elmas stole millions of dollars from 20 clients, many of whom were wholly dependent on these investments for their retirement or monthly income.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge Anthony J. Trenga. This case was investigated by the FBI’s Washington Field Office. Assistant U.S. Attorney Chad Golder is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-328.