An ex-
UBS
advisor pleaded guilty in a federal court in Miami to defrauding clients of more than $5 million, the Justice Department said.
German Nino, who was charged earlier this year, entered a plea agreement April 12, according to court records. His attorney, James D. Sallah, declined to comment on behalf of his client.
The Department of Justice seal hangs at the headquarters in Washington, D.C., U.S.
Andrew Harrer/Bloomberg
Nino is also facing civil charges by the Securities and Exchange Commission, which has accused him of a multiyear fraud scheme. The SEC says Nino spent stolen funds “on gifts for several women with whom he had romantic relationships.” The former advisor, who was based in Boca Raton, paid for vacations and luxury cars for his romantic partners, as well as private school tuition for their children, according to the SEC, which is seeking the return of ill-gotten gains and civil penalties.
Nino, an advisor since 1995, had been registered with UBS from 2012 until August 2020, according to BrokerCheck, a public database maintained by industry self-regulator Finra. During that time, he oversaw investment accounts for various UBS customers, including three clients who were related (a husband, wife, and adult son) and who had accounts at the firm, according to a Justice Department news release.
The unidentified wealthy couple became clients of his in 2012, opening an $11 million account at UBS, according to a criminal complaint filed by prosecutors Jan. 21.
Starting in May 2014, Nino made more than 60 unauthorized transfers totaling about $5.8 million from UBS accounts belonging to the three clients, the department’s news release says.
To conceal the scheme, Nino produced fake statements to the clients, misrepresented the true performance of various investments, and forged client signatures on key documents, the release says. In one instance, he removed a client’s email address from UBS’ systems so as to ensure the client would not receive notifications about unauthorized transactions.
Nino is scheduled for sentencing on June 21 before U.S. District Judge Donald Graham. He faces up to 60 years in prison, the department said. He also may have to pay nearly $7 million in restitution, according to this plea agreement.
A UBS spokesman was unavailable for immediate comment on Nino’s guilty plea. In January, the company had said that it “has compensated the affected customers for any losses from their UBS accounts.”
Nino has a single client complaint listed on his BrokerCheck record, which indicates the complaint was settled for $5.8 million.
Write to Andrew Welsch at [email protected]
Source: https://www.barrons.com/advisor/articles/ex-ubs-advisor-pleads-guilty-to-fraud-that-funded-multiple-romances-51650049583?siteid=yhoof2&yptr=yahoo