A former Morgan Stanley financial advisor from Tucson, Ronald Diaz, has pleaded guilty to Wire Fraud in connection with defrauding an elderly client.
According to the Department of Justice, while working as a financial advisor, the 40-year-old Diaz engaged in a scheme to defraud an elderly client. To induce the victim into the scheme, Diaz falsely represented an investment opportunity in an “annuity” that “guaranteed” a 10% return. Between November 2020 and July 2022, to disguise his scheme, Diaz directed the victim to transfer $970,000 to Diaz’s family members. Diaz thereafter instructed his family members to distribute most of the victim’s funds back to Diaz. Once he received the funds, Diaz used large portions of the victim’s money for his own personal benefit including gambling at casinos, making a down payment on a 2021 Range Rover, paying credit card debt, remodeling his family pool, paying his mortgage, and paying other personal expenses. Diaz made some “interest” payments to entice the victim into providing additional money throughout the scheme. None of the victim’s money was used towards any legitimate investment. As a result of the scheme, the victim lost over $867,000. As part of his plea agreement, Diaz will be required to pay restitution to the victim’s estate.
Diaz’s sentencing is scheduled for September 27, 2024, before United States District Judge Scott H. Rash.
A conviction for Wire Fraud carries a maximum penalty of 20 years in prison and a $250,000 fine, or both.