Springfield Investment Adviser Admits Stealing $2.1M From Clients

SPRINGFIELD, NJ — A former broker and investment adviser from Springfield admitted Wednesday to stealing more than $2.1 million from two clients in order to pay for personal expenses including a BMW and credit card bills, U.S. Attorney Craig Carpenito announced.

Gary Basralian, 70, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to an information charging him with one count of wire fraud and one count of investment adviser fraud.

From August 2007 through November 2017, while serving in his capacity as an investment adviser, Basralian misappropriated at least $738,000 from one client and at least $1.4 million from another client, according to the complaint.

Basralian claimed he would invest these funds in brokerage accounts at "Securities Firm A" or in real estate and high-interest loans, and manage them on behalf of the victims. Instead, Basralian used the victims' money to fund his own personal expenditures, including BMW payments and tens of thousands of dollars in credit card bills, according to the complaint.

Each of the wire fraud counts carries a maximum potential penalty of 20 years in prison and $250,000 fine, or twice the gross gain or loss from the offense. The investment adviser fraud count carries a maximum potential penalty of five years in prison and a $10,000 fine, or twice the gross gain or loss from the offense.

On May 22, Basralian's agent and investment adviser representative registrations were revoked by the New Jersey Bureau of Securities, within the Office of the New Jersey Attorney General.

Sentencing is scheduled for Dec. 3.

(Image via Shutterstock)

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