Springfield Investment Adviser Allegedly Stole $2.1M From Clients

SPRINGFIELD, NJ — A broker and investment adviser from Springfield was arrested Wednesday for allegedly 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, is charged with two counts of wire fraud and one count of investment adviser fraud. Basralian was arrested earlier Wednesday at his home and is scheduled to appear Wednesday afternoon before U.S. Magistrate Judge Steven C. Mannion in Newark federal court.

From August 2007 through November 2017, while serving in his capacity as an investment adviser, Basralianmisappropriated 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 Tuesday, 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.

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