Stamford Man Receives Jail for Defrauding Investment Clients

Stamford resident Michael Lombardo Jr. of Stamford, was sentenced Wednesday by Senior U.S. District Judge Alfred V. Covello in Hartford to 12 months and one day of imprisonment, followed by three years of supervised release, for defrauding more than 20 of his investment clients.

According to court documents and statements made in open court, the 38-year-old Lombardo worked for David Lerner Associates, Inc., a Westport-based company that provided investment services. Lombardo provided financial advice to the company’s clients with respect to their retirement savings and other investments.

From approximately September 2011 to February 2014, Lombardo defrauded more than 20 clients by diverting more than $190,000 in client funds for his personal use. As part of his scheme, Lombardo submitted fraudulent requests to disburse a portion of the retirement accounts of clients. Lombardo would request that a disbursement check be sent, typically by overnight mail, to him at his Westport office. After he received the check, he would forge the client’s signature on the back of the check and then cause the check to be deposited into his personal bank account.

Lombardo also was ordered to pay $191,068.73 in restitution.

On Sept. 11, 2014, Lombardo pleaded guilty to one count of wire fraud.

The case was investigated by the Westport Police Department and the United States Secret Service and was prosecuted by Assistant U.S. Attorney Ray Miller.