A New York wealth manager who overcharged hundreds of clients will reportedly plead guilty
- New York wealth manager Richard Diver is set to plead guilty following charges of overbilling clients and misappropriating office funds to pad his salary, Bloomberg first reported Tuesday.
- Federal prosecutors allege Diver used his position at M&R Capital to send about $6 million to his personal account.
- The Securities and Exchange Commission also sued Diver, claiming he overcharged more than 300 clients by $750,000.
- Prosecutors asked the federal judge on Monday to postpone a court appearance scheduled for Tuesday, as Diver plans to plead guilty at his next opportunity, Bloomberg reported.
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A New York wealth manager is set to plead guilty following charges of overbilling clients and misappropriating office funds to pad his salary, Bloomberg reported Tuesday.
Federal prosecutors allege Richard Diver, co-founder and former chief operating officer of M&R Capital Management, used his position at the firm to pad his payroll and send about $6 million to his personal account through improper billing.
The Securities and Exchange Commission also sued Diver, claiming he inflated his salary from 2011 to 2018 by overbilling more than 300 clients by $750,000. The agency added that, when confronted by M&R's CEO in December 2018, Diver confessed to the scheme.
Diver said he couldn't repay clients because he "engaged in wild personal spending," the SEC complaint said. The former COO was fired in December 2018 and arrested in March.
Lawyers representing Diver haven't yet replied to emails seeking comment.
Prosecutors asked the federal judge presiding over the case on Monday to postpone a court appearance scheduled for Tuesday, as Diver plans to plead guilty at his next opportunity, Bloomberg reported.
Diver was charged with investment adviser and wire fraud. Prosecutors didn't detail which charges he will plead guilty to, according to Bloomberg.
M&R Capital manages $500 million and was founded by Diver and John E. Maloney in 1993. Diver owned a 9% stake in the firm while Maloney owned the remainder of the company, Bloomberg reported.
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