Former Merrill Lynch broker convicted of wire fraud

Jesse Joseph Holovacko took $255,000 from client IRA claiming to buy bonds.
MAY 02, 2017

A former Merrill Lynch financial adviser in New Jersey was convicted in federal court for defrauding a client out of his retirement savings and using the funds for his own benefit. Acting U.S. Attorney William E. Fitzpatrick said that Jesse Joseph Holovacko, 39, of Sayreville, was convicted Friday of six counts of wire fraud and one count of investment adviser fraud. In 2012, a year after he joined Merrill Lynch, Mr. Holovacko signed a client after a visit to the factory where the client worked. The adviser then transferred the client's pension savings into an IRA, according to a report on East Brunswick (N.J.) Patch. From December 2013 through August 2014, Mr. Holovacko told the client that he would be using retirement account funds to purchase bonds for him and advised the client to transfer funds from the IRA to his bank account and then provide cashier's checks made out to Mr. Holovacko, telling the client that doing so would make it easier to purchase the bonds. Based on these false representations, Mr. Holovacko obtained 18 cashier's checks totaling approximately $255,000, said Mr. Fitzpatrick, who added that Mr. Holovacko deposited the checks to his own bank account and spent all the money. The wire fraud charges on which Mr. Holovacko was convicted each carry a maximum potential penalty of 20 years in prison and a $250,000 fine.

Latest News

Integrated Partners, Kestra welcome multigenerational advisor teams
Integrated Partners, Kestra welcome multigenerational advisor teams

Integrated Partners is adding a mother-son tandem to its network in Missouri as Kestra onboards a father-son advisor duo from UBS.

Trump not planning to fire Powell, market tension eases
Trump not planning to fire Powell, market tension eases

Futures indicate stocks will build on Tuesday's rally.

From stocks and economy to their own finances, consumers are getting gloomier
From stocks and economy to their own finances, consumers are getting gloomier

Cost of living still tops concerns about negative impacts on personal finances

Women share investing strengths, asset preferences in new study
Women share investing strengths, asset preferences in new study

Financial advisors remain vital allies even as DIY investing grows

Trump vows to 'be nice' to China, slash tariffs
Trump vows to 'be nice' to China, slash tariffs

A trade deal would mean significant cut in tariffs but 'it wont be zero'.

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.