Cape Investment Adviser Pleads Guilty To Fraud, Identity Theft

ORLEANS, MA – An investment adviser from Cape Cod admitted to defrauding her clients of more than $3 million in federal court Monday. Kimberly Kitts, 51, pleaded guilty to investment adviser fraud, four counts of wire fraud and one count of aggravated identity theft.

Starting in 2011, the Orleans investment adviser misappropriated her clients' assets in order to pay her personal expenses, according to the U.S. Attorney's office. One scheme saw her direct client assets to a bank account for Marquis Consulting, which she controlled. In another scheme, she used used her position to divert her clients' funds to her own account and then used them for her own gain, the USAO said.

This included cashing her clients' annuities, transferring funds out of their brokerage accounts and directing distributions from their Individual Retirement Accounts. In total, Kitts misappropriated about $3,085,939 from her clients, according to federal authorities.

The charge of investment adviser fraud carries a sentence of no greater than five years in prison, three years of supervised release and a fine of $10,000. The charge of wire fraud carries a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of aggravated identity theft provides for a mandatory consecutive term of two years in prison, which must be served consecutive to any other sentence imposed by the court.

Sentencing has been scheduled for March 20.

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