Written by 9:23 am Blog, Securities Fraud Articles

Former LPL Financial Advisor Elliot Kravitz Pleads Guilty to Fraud

According to the Cincinnati Business Courier, Elliot Kravitz, a financial advisor in Mason, Ohio, recently pleaded guilty to one count of wire fraud for an investment scheme in which he defrauded nine of his customers out of more than $2 million.

Elliot Kravitz could face up to 20 years in prison and a fine of up to $250,000. He is scheduled to be sentenced Aug. 23. In addition, the judge could order Kravitz to pay restitution of the more than $2 million.

According to his plea agreement, Kravitz was an independent client investment representative with LPL Financial Corp., formerly Waterstone Financial Corp., and sold securities through those financial institutions.  In July 2007, Kravitz advised a client to pull money out of the stock market and invest it in a real estate investment trust. The client signed a distribution form allowing Kravitz to move the money. Instead of investing it in the trust, Kravitz put the money into an account he controlled. He made 12 more withdrawals totaling $713,765 from the client’s account.

Kravitz then sent the client a year-end account portfolio statement listing the fake real estate investment. He purportedly diverted approximately $1.12 million from eight other clients for personal use.

The White Law Group is currently investigating the potential for clients of Kravitz to recover a portion of their losses in claims against his employer.

Even if a financial advisor is conducting business without the knowledge of his employer, the firm may still be liable for negligent supervision of their broker representative and may be responsible for investment losses in a FINRA arbitration claim.

If you have suffered losses due to your investment with Elliot Kravitz and would like to speak to a securities attorney about your potential to recover those investment losses, please call The White Law Group’s Chicago office at 312-238-9650.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida.

For more information on The White Law Group, please visit our website at http://whitesecuritieslaw.com.

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