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Westport Adviser Pleads Guilty To Defrauding Clients Of $190K

STAMFORD, Conn. -- A 38-year-old Stamford man who worked for a Westport-based company pleaded guilty to taking part in a scheme to defraud more than 20 of his investment clients. 

Michael Lombardo Jr. waived his right to indictment and pleaded guilty Sept. 11 in federal court in Hartford.

According to court documents and statements made in court, Lombardo worked for a Westport-based company that provided investment services.  He provided financial advice to the company’s clients about their retirement savings and other investments. 

From September 2011 to February 2014, Lombardo defrauded more than 20 clients by diverting more than $190,000 in their funds for his personal use. 

As part of his scheme, he submitted fraudulent requests to disburse a portion of the retirement accounts of clients, said Deirdre M. Daly, United States Attorney for the District of Connecticut. Lombardo would request that a disbursement check be sent, typically by overnight mail, to him at his Westport office. 

After he received the check, he would forge the client’s signature on the back of the check and then deposit the amount into his personal bank account. Lombardo is scheduled to be sentenced by Senior U.S. District Judge Alfred V. Covello on Dec. 4. He faces a maximum prison term of 20 years and a fine of up to $250,000.  As part of his plea agreement, he will be required to pay $191,068.73 in restitution.

This case was investigated by the Westport Police Department, the U.S. Secret Service and the Connecticut Financial Crimes Task Force. The case was prosecuted by Assistant U.S. Attorney Ray Miller.

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