Florida Advisor Sentenced To More Than Six Years For Defrauding Elderly Client
An ex-financial advisor in Florida has been sentenced to more than six and a half years in prison after he pleaded guilty to defrauding an elderly client of more than $2 million, money he used largely to support a gambling habit, according to prosecutors.
Eric James Stone, 43, a former Fidelity Investments representative in St. Augustine, was sentenced to six years and eight months after pleading guilty in March to wire fraud and money laundering charges, the Department of Justice said on Thursday.
He must also pay $2,037,103 in restitution to the 75-year-old client, a Maryland woman he befriended in his role as her financial advisor.
Prosecutors said that over three years, Stone persuaded the victim to make over 600 transactions transferring more than $2 million.
“To convince the victim to send him money, Stone sent fraudulent emails from purported attorneys, banks, and other internet websites. Stone spent most of the victim’s money on foreign gambling websites,” said the U.S. Attorney’s Office for the Middle District of Florida in announcing the sentencing.
Stone’s activity started in 2021 when he asked the client for a $30,000 loan. His solicitations of loans from clients got him fired from Fidelity, and he was later barred by the Financial Industry Regulatory Authority for failing to produce documents related to his termination, according to Finra records and Stone’s BrokerCheck page.
According to the government’s indictment filed last year, after the first loan in 2021, Stone began a scheme to wring more money from his client over the next three years by asking her send money for fake fines and attorney fees related to the original loan. He sent screenshots of fictitious messages from attorneys that he falsely said were assisting him, for example. He also prompted the victim to open bank and other financial accounts for the purpose of transferring funds to him, the indictment says.
To solicit more funds from the client, Stone sent her QR codes and bitcoin wallet addresses, requests through Zelle and requested that she deposit money in a RockItBitcoin ATM. These requests for money eventually ended up being more than $2 million.
A sentencing memorandum submitted by Stone’s attorney said that his behavior was influenced by the breakdown of his marriage and his subsequent turn to gambling and alcohol to escape the turmoil of his home life.
Over the three years he was soliciting money from the client, the memorandum says, “Mr. Stone’s behavior completely changed from the once loving father and trusted advisor, to a predatory thief. He went from someone who lived a normal, average, law abiding life to developing a romantic relationship with a Colombian national, gambling wildly, stealing, and basically living like there would be no consequences for his actions and with no real thought of the repercussions. Through this newfound relationship, Mr. Stone began travelling internationally. He gained ties to suspect international business partners who encouraged excessive spending through bitcoin. Mr. Stone invested a significant portion of [the client’s] money in Colombian companies that seemingly no longer exist.”
In June 2024, the memorandum says, Stone was arrested for a DUI that eventually led to time in St. Johns County, Fla.
The Department of Justice said the case was investigated by the Internal Revenue Service and the Federal Bureau of Investigation.
