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.
Richard T. Diver, co-founder and former chief operating officer of M&R Capital Management, was arrested in March. He was charged with overbilling clients by hundreds of thousand of dollars and diverting about$6mfrom the company's payroll to his own account.
The Securities and Exchange Commission also sued Diver, claiming he inflated his salary from 2011 to 2018 by overbilling more than 300 client accounts by $750,000. The agency added that, when confronted by M&R's CEO in December 2018, Diver confessed to the scheme.
All clients were repaid in full by M&R Capital"
Diver said he could not repay M&R because he "engaged in wild personal spending," according to the SEC complaint. The former COO was fired in December 2018 and arrested in March.
"All clients were repaid in full by M&R Capital," according to Terry Rooney, who represents the firm. New York-based M&R, which oversees $500m, was founded by Diver and John E. Maloney in 1993.
Diver, who is in his early 60s, was charged with investment adviser and wire fraud. Prosecutors did not detail which charges he will plead guilty to, according to Bloomberg.