Ohio Financial Advisor Is Sentenced to Prison Over an 8-Year Fraud Scam
If you suffered serious investment losses while working with former W & S Broker Services stockbroker Ronald Scott Dailey, contact Shepherd Smith Edwards and Kantas (investorlawyers.com) today. The barred financial advisor was sentenced to 54 months in prison after he pleaded guilty to wire fraud and tax evasion connected to an eight-year scam that cost his victims hundreds of thousands of dollars.
Among the allegations made against him was that he would convert clients’ funds taken out of fixed annuities and life insurance. He would have them move the money to a bank account that he controlled, defrauding at least three victims of over $707,000, which he was ordered to pay in restitution. He also must pay the IRS almost $212,000.
A number of Dailey’s customers were elderly clients. In addition to being a W & S Broker Services registered representative, he also worked with a life insurance brokerage firm through which he would advise older people about annuity products and life insurance.
The Financial Industry Regulatory Authority (FINRA) barred Dailey in 2021, not long after he was fired by W & S Brokerage Services following his purported refusal to cooperate in its probe into allegations that he converted client funds.
Ronald Dailey’s BrokerCheck CRD shows one still pending customer dispute in which the elderly customer is alleging conversion of funds taken out of fixed annuities and life insurance. The client is suing for up to $500,000. Another customer dispute, in which the claimant is alleging misrepresentations and omissions, was resolved with a five-figure settlement.
Dailey worked 12 years in the brokerage industry. He was a W & S Brokerage Services financial advisor the entire time.
What Is Conversion of Funds As It Applies To Brokers and Their Customers?
In this context, conversion is what happens when a financial advisor is able to take lawfully obtained money belonging to a customer and unlawfully use the funds in an unauthorized way, including without permission. Conversion is a type of embezzlement that isn’t only illegal and a crime, but also it can be grounds for filing a financial recovery claim against your broker-dealer that should have been properly supervising its registered representative to prevent this type of fraud.
A financial advisor may “borrow” or move a customer’s funds to a different account under the broker’s name for their own use. They might execute a number of transactions to hide that they are stealing /converting the client’s money. Running a Ponzi scam, in which newer investors’ funds are used to pay earlier investors under the guise that the money is a return or profit, is another example of how funds can be converted.
How Can Our Older Investor Fraud Lawyers Help?
You don’t have to be an elderly investor to fall victim to a conversion of funds scam, but seniors tend to be a vulnerable target. Shepherd Smith Edwards and Kantas represents retirees and older investors who have been the victims of elder financial exploitation. We have the skills, resources, and knowledge to maximize each of our clients’ chances for a full financial recovery.
Call (800) 259-9010 or contact us online to schedule your free, no obligation case consultation.