Elliot Kravitz (“Kravitz”), a former broker for LPL Financial (“LPL”) in Ohio, was sentenced to 41 months in prison and ordered to pay $1.8 million in restitution to clients. Kravitz pleaded guilty to wire fraud last year. According to prosecutors, Kravitz wired funds from the accounts of at least 9 of his clients into an account Kravitz controlled.
Kravitz was affiliated with Waterstone Financial Group from 1992 until it was merged into LPL in 2009. Kravitz continued on with LPL until he was terminated by the firm in March 2010 for “misappropriation of client funds,” according to Kravitz’s FINRA BrokerCheck report.
According to the FBI, Kravitz’s scheme began in 2007 when he advised one of his clients to pull his money out of the stock market and instead invest in a real estate investment trust (“REIT”). The FBI claims that, instead of putting the customer’s funds into a REIT, Kravitz deposited the money into his personal account. The FBI claims that Kravitz converted a total of approximately $1.8 million from at least 9 of his clients.
According to a statement by LPL, it has worked to provide restitution to all customers involved.
Investors nationwide who have been the victims of financial fraud or who have incurred recoverable investment losses due to specific failures by stockbrokers and brokerage firms, may contact the Florida FINRA arbitration attorneys at McCabe Rabin, P.A. for a free and confidential consultation by calling toll free at 877.915.4040 or by e-mail to email@example.com.