U.S. District Judge Bruce H. Hendricks sentenced Claus Foerster, 56, of Spartanburg to 24 months in prison to be followed by three years of supervised release, according to the U.S. Attorney’s Office for the District of South Carolina.

Foerster defrauded clients of over $3 million while employed as a financial adviser at Morgan Keegan & Co. and Raymond James Financial Inc. in Greenville, SC, according to the indictment.

Forester also was ordered to pay more than $3.5 million in restitution to the victims, the U.S. Attorney’s Office said.

Allegedly Claus told investors that their funds would be invested in a fund known as S.G. Investments but instead the funds were placed in a bank account controlled by Foerster.

According to FINRA Broker Check, Foerster was registered by Morgan Keegan & Co. Inc. in 2008 and came to Raymond James in 2013. Foerster was discharged from Raymond James in 2014, when he was permanently barred from the securities industry by FINRA.

The White Law Group is investigating what liability Foresters employer may have for client’s losses. When a FINRA registered representative conducts business outside the scope of the brokerage firm where they are registered, the act can be considered “selling away.” If proven, the brokerage firm may be liable for negligent supervision of their broker representative and held responsible for investment losses in a FINRA dispute resolution claim.

For more information on The White Law Group’s investigation see Claus Foerster Accused of $3 Million Investment Scam.

If you were a client of Claus Foerster and would like to discuss your litigation options to recover investment losses, please call the firm at (888) 637-5510 for a free consultation.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida. For more information on the firm, visit www.WhiteSecuritiesLaw.com.