Bart James Ellis, 44, of Scottsdale, was sentenced to 24 months in prison and ordered to pay more than $900,000 in restitution. Ellis had previously pleaded guilty to money laundering.
From 2012 through 2015, Ellis, a former financial advisor, solicited more than $1.1 million from former clients, several of whom were elderly, by claiming that the funds would be used to purchase low-risk investments, but instead he used approximately $400,000 on personal expenses and lost approximately $700,000 on risky stock trades in his online brokerage account. Ellis also attempted to conceal his fraudulent scheme by falsifying investment statements.
“The defendant misled his clients and stole their hard earned money,” stated IRS-Criminal Investigation Special Agent in Charge Ismael Nevarez Jr. “IRS-CI will continue to protect the public by investigating individuals who defraud their investor clients.”
The investigation of this case was conducted by the Internal Revenue Service-Criminal Investigation.