Investment Advisor Pleads Guilty to Bank Fraud Charges
| U.S. Attorney’s Office April 26, 2011 |
Keith Epstein, 56, of Farmington Hills, pleaded guilty today to bank fraud charges, United States Attorney Barbara McQuade announced. Joining in the announcement was Special Agent in Charge Andrew Arena, Federal Bureau of Investigation (FBI).
According to court documents, Epstein, an investment advisor, directed clients to liquidate their legitimate investments in securities in order to purportedly place them in new, less risky instruments, with him. Instead of investing their money conservatively, in safe investments as promised, Epstein deposited client funds into his own accounts. Epstein then used those client funds for various personal expenses, including gambling, exotic dancers, and some “interest” payments to other investors to keep the scheme going.
Sentencing is scheduled for August 25, 2011 at 2:00 p.m. before the Honorable Nancy G. Edmunds. Epstein is currently serving a one-year sentence in the Macomb County Jail for violating state blue sky laws, borrowing from a customer, and writing a nonsufficient funds check.
The case is being prosecuted by Assistant United States Attorney Erin Shaw.