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New Jersey Man Charged in Overbilling Scheme at RIA

The former chief operating officer of New York-based M&R Capital Management has been charged in a fraudulent scheme where he allegedly overbilled clients to artificially inflate his pay.  

The Securities and Exchange Commission filed charges against New Jersey resident Richard T. Diver, claiming that between 2011 and 2018, Diver stole $6 million from the RIA—which was not named in the complaint. (According to Diver’s LinkedIn account, he worked M&R for the last 25 years.) Diver overcharged more than 300 client accounts by approximately $750,000, the SEC claims, and then used the money to inflate his own salary.

The United States Attorney’s Office for the Southern District of New York filed criminal charges against Diver and arrested him for embezzlement.

“Mr. Diver allegedly used his position of trust to overcharge his clients to fund his spending habits and lavish lifestyle,” said Inspector-in-Charge Philip R. Bartlett, in a statement. “In situations such as these, no one believes they will get caught; but when you allegedly cheat your clients and use the US Mail to facilitate a lie, be forewarned—Postal Inspectors and their law enforcement partners will eventually uncover your unlawful deeds and bring you to justice.”

Clients noticed the overbilling in December, and Diver confessed the scheme to the CEO.

Source | easywealth.fun

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