Former Maryland Insurance Agent and Financial Planner Sentenced to Almost Five Years in Federal

[TexasTowelie]

Former Maryland Insurance Agent and Financial Planner Sentenced to Almost Five Years in Federal Prison for $2.8 Million Fraud Scheme

Defendant’s Employer Settled with the Victims Who Suffered Financial Losses as a Result of the Scheme


Baltimore, Maryland – U.S. District Judge Deborah K. Chasanow today sentenced Jonathan Williams, age 48, of Boston, Massachusetts, a former Maryland insurance agent and financial planner with New York Life, to 57 months in federal prison, followed by three years of supervised release, for wire fraud, in connection with a scheme to defraud clients of more than $2.8 million. Judge Chasanow also ordered Williams to forfeit and pay restitution of $2.8 million.

The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur and Postal Inspector in Charge Peter R. Rendina of the U.S. Postal Inspection Service - Washington Division.

According to his plea agreement, from February 2006 through March 2015, Williams worked as a New York Life insurance agent and was licensed to sell insurance in Maryland, and registered with the Financial Industry and Regulatory Authority (FINRA). Williams was only authorized to sell New York Life related products and provide financial planning through a New York Life affiliate. New York Life did not sell certificates of deposit (CDs) nor was Williams authorized to sell CDs. New York Life authorized the use of “doing business as” entities (DBAs) for marketing purposes only and approved Williams’ use of Mid-Atlantic Financial and Williams Investment Group as DBAs. Williams was not permitted to have premiums made payable to him or his DBAs.

Williams admitted that from 2009 to 2015, Williams deceived New York Life and its customers, and fraudulently obtained more than $2.8 million. At Williams’ direction, customers paid money to entities with bank accounts that Williams controlled, including Advanced Retirement Solutions, Jonathan Williams Financial Planning, and Mid-Atlantic Financial. Williams used the victim funds to make cash withdrawals, to pay personal and business expenses, to pay employees, to take vacations, and other miscellaneous expenses.

Read more: https://www.justice.gov/usao-md/pr/former-maryland-insurance-agent-and-financial-planner-sentenced-almost-five-years-federal