Judge Sentences Bucks County Investment Adviser to Four Years in Embezzlement Scheme
|U.S. Attorney’s Office November 14, 2013|
PHILADELPHIA—David Rothman, 50, of Richboro, Pennsylvania, was sentenced yesterday to 48 months in prison for wire fraud and money laundering. Rothman was the vice president of Rothman Securities Inc. (RSI), an investment brokerage firm in Southampton, Pennsylvania. Between January 2007 and February 2012, Rothman embezzled from a 92 year-old RSI client and several beneficial trusts for which he was a named trustee. He used the money for personal expenses and to pay his family, his friends, and other clients whom he provided falsely inflated investment statements. To mask his fraud, Rothman created bogus documents and cover stories to deceive his victims and clients and to lull them into a false sense of security. Rothman, a graduate of Penn State University whose annual salary was $600,000 in 2011, pleaded guilty to the two counts on March 26, 2013.
In addition to the prison term, U.S. District Court Judge Berle M. Schiller ordered three years of supervised release and restitution of $505,831.09.
The case was investigated by the Federal Bureau of Investigation and the Securities and Exchange Commission. It was prosecuted by Assistant United States Attorney Vineet Gauri.