A former realtor for Raymond James is jailed for five years for stealing more than $ 930,000 from a pair of senior investors. the Ministry of Justice announced Friday.
Frederick M. Stow is a Tennessee-based broker with decades of experience in the industry, including multi-year stints with Suntrust Investment Services and Wells Fargo Advisors. He joined Raymond James in 2013. according to his BrokerCheck profile. One of the unnamed victims in Stow’s plan was a retired airline pilot and World War II veteran, and Stow began working with him in 1982. following an SEC complaint submitted last year.
Stow worked as the registered agent for this client on three brokerage accounts including an IRA, a family trust account and a living escrow account. Although Stow switched companies several times, the older client, referred to as “Client A” in the SEC complaint, decided to keep his dealings with the broker.
“Over time, Stow has worked his way into the personal and financial affairs of Client A,” the complaint said. “In Client A’s later years, he would visit Client A frequently at his home, where he lived alone but received full-time care.”
However, in October 2015, Stow began withdrawing funds from the client’s IRA account by forging wire transfer authorization letters that allowed him to make transfers from the IRA to a bank account owned by Stow and his wife that did 74 separate transfers in total included. The letters incorrectly stated that the receiving account was owned by the customer, even though the account number was the same as Stow’s account. Stow also began selling securities in the investor’s IRA account and keeping the money he earned.
After the customer died on March 28, 2018, the executor notified his estate to Raymond James and asked for account information. The company has frozen the customer’s account. In total, Stow had taken about $ 91,500 off the older veteran. According to the DOJ, witnesses testified that the investor believed that their poor investment performance was only due to the stock market.
The veteran wasn’t Stow’s only victim; Just over a year after that client died, Stow stole $ 32,000 from a separate, nameless elderly client and transferred money from their brokerage account to one of their accounts.
Stow was charged with securities fraud, cable fraud and aggravated identity theft last June and found guilty a few months later. US District Judge Aleta A. Trauger also claimed the loss of funds totaling $ 933,500.