A former FINRA-registered advisor will spend over three years in prison for defrauding more than a dozen investors of over $3 million.
Robert C. Starnes previously pleaded guilty to fraud in Wisconsin federal court and will spend 40 months incarcerated and pay over $3 million in restitution to his victims.
According to Acting U.S. Attorney Robert Frohling, the sentence “takes into account both the significant financial losses caused by the defendant’s scheme and the fact that he abused the trust of his victims.”
According to FINRA records, Starnes first registered in 1986 at Equitable Securities, with multi-year stints at numerous firms, including 12 years at SunAmerica Securities, as well as stretches at Harbour Investments, Berthel Fisher & Company, and Quest Capital Strategies. In 2018, Starnes joined SA Stone Wealth Management.
According to the Department of Justice and court documents, Starnes operated Robert C. Starnes Financial Services out of Wauwatosa, Wisc. Between 2008 and 2023, he convinced friends, acquaintances and family members to invest their retirement savings with him, promising investment strategies that would yield substantial returns.
However, Starnes didn’t invest the funds; instead, he deposited the money into personal bank accounts he held at Wells Fargo and BMO Harris Bank. From there, he used the money for personal expenses, including paying off credit cards and making at least one $25,000 payment on his mortgage.
When victims requested withdrawals from their accounts, Starnes would simply write checks and transmit funds from the personal bank accounts. Additionally, Starnes would provide investors with false statements showing their investments had generated returns, often including names and logos of investment companies, such as “DWS Investments” or “Barclays.”
According to FINRA, in May 2023, Starnes was fired from SA Stone after he “violated the firm’s policy/procedure related to (the) acceptance of client funds.” Several months later, Starnes refused to sit for FINRA on-the-record testimony regarding a customer complaint; in response, the brokerage regulator barred him from the industry.
“Illegal activity involving the investment industry has brought financial ruin to many Americans,” said Special Agent in Charge Adam Jobes at the IRS’s Criminal Investigation Division, in a statement. “Today’s sentencing demonstrates how law enforcement will work together to help put an end to the criminal behavior of those who prey on investors for their personal financial gain.”
