John Montague Pleads Guilty to Defrauding Clients of More than $900,000
John Montague, an investment professional in Mantua, New Jersey, was charged with defrauding his clients of more than $900,000 by utilizing their checks for personage usage.
The Peiffer Wolf law firm’s securities practice attorneys Jason Kane and Joe Peiffer are investigating the matter on behalf of investors.
Montague Sold Unauthorized Investment Products
Montague was licensed to sell certain investment products but not others, as reported by the U.S. Federal Bureau of Investigation . He was authorized to sell mutual funds, variable annuities, and insurance premiums but prohibited to sell corporate or mutual securities, direction participation programs or options. Montague convinced his clients to buy certain investment vehicles which were included in the ones he was not permitted to sell thereby defrauding them .
Montague informed his clients that the investments were guaranteed and assured them of an estimated six percent rate of return, as indicated by the U.S. Federal Bureau of Investigation . He told his clients to make their investment checks payable to directly to him and then proceeded to deposit those checks into his personal bank accounts. In order to keep his clients unaware of his dealings and maintain their trust, he distributed intervallic “dividend” checks to them.
Montague Admits to Committing Wire Fraud
Montague was accused of wire fraud due to his defrauding costing his clients more than $900,000, as announced by U.S. Attorney Paul J. Fishman. He pled guilty to one count of wire fraud in federal court. The sentencing has not yet taken place however the charge may result in a sentence of a maximum of 20 years in prison and a $250,000 fine.
Investor Right Attorneys Investigating Montague’s Misconduct
The Peiffer Wolf attorneys often represent investors who lose money as a result of Ponzi schemes, investment fraud, or stockbroker misconduct. They are currently investigating the possibility of assisting investors with the recovery of any losses they may have suffered in connection with John Montague. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.
Investors who believe they lost money as a result of investment fraud or misconduct may contact the securities lawyers at Peiffer Wolf, Jason Kane or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at 585-310-5140.
Broker: John Montague
Status: INVESTIGATED by Peiffer Wolf.
For brokercheck report and additional info click here!