Redonda Russell Serving Sentence in Federal Prison after Allegedly Siphoning Funds from the Accounts of Dead Souls
Redonda Russell, 68, and former investment advisor of Fort Worth, Texas, allegedly siphoned funds from her company’s inactive accounts, and is now serving a sentence of a year and a day in federal prison, according to court documents. The documents further allege that about half of said accounts allegedly belonged to dead clients.
Russell, allegedly stole more than $316,000 from First Command Financial Services accounts, according to federal prosecutors. As a result, Russell, who pleaded guilty to one alleged count of wire fraud in August, reported to the U.S. Bureau of Prisons on Jan. 27 to begin serving her sentence of a year and a day at a federal prison.
Federal Judge Ordered Russall to Pay Back $316,000 in Restitution and Serve Three years of Supervised Release
A federal judge has ordered Russell, who was employed at First Command for 22 years and worked for seven years as associate director of client services before leaving in 2013, to pay $316,000 in restitution and serve 36 months of supervised release, according to prosecutors working on the case.
On March 19, 2012, according to court documents, Russell requested First Command computer specialists to compile a list of clients with life insurance policies or investment accounts with balances greater than $2,000 who were also dead. Then, for over a year, Russell obtained identifying information on 18 First Command clients, eight of whom were supposedly dead, court documents stated.
After drawing up documents that gave her control over the accounts, Russell got subordinates to validate the false documents with an electronic signature, according to court documents. What is more, prosecutors allege that said documents go on to note that Russell mailed the fraudulent documents to the investment or insurance companies that maintained the accounts and gained control over them, and that she later sent the partner companies documentation that caused them to either liquidate or take out a loan against the targeted accounts.
Finally, Russell allegedly took the proceeds from the account liquidations or loans and deposited the money into one of her personal accounts using different signatures, all of which included the last name Russell. The maximum sentence for a wire fraud charge is 20 years in prison, a $250,000 fine and restitution, according to court documents.
The Peiffer Rosca Wolf investment recovery lawyers often represent investors who lose money as a result of investment misconduct and Ponzi schemes, and are currently investigating Russell. 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.
Any investor who believes they lost money as a result of Russell’s scheme are welcomed to contact the investment recovery attorneys at Peiffer Rosca Wolf, Alan Rosca or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at 888-998-0520.
Broker: Redonda Russell
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