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November 22, 2011 at 2:01 PM

Kirkland stockbroker facing prison for wire fraud

A Kirkland stockbroker pleaded guilty yesterday to wire fraud for defrauding clients out of millions of dollars, according to the U.S. Attorney’s Office.

According to a plea agreement, Richard A Finger Jr., 32, of Belleuve, owner and operator of Black Diamond Capital Management LLC and Black Diamond Securities LLC of Kirkland, admitted he defrauded more than 10 clients of up to $7 million. Some of the victims invested with Finger when he was working for a Seattle brokerage firm.

In one instance, the victim placed nearly $700,000 with Finger for investments. From the fall of 2009 through 2010, Finger assured the client the investments were growing steadily, when in fact the account was sustaining significant losses, according to the U.S. Attorney’s Office.

When Finger moved from the Seattle brokerage firm to his own firm, he provided the client with phony statements showing his account was worth more than $1.2 million, when, in fact, the account was worth less than $5,500, the U.S. Attorney’s Office said.

In addition to the trading losses, Finger allegedly took significant commissions from 10 accounts and used them for his own benefit, the news release said.

The complaint alleges that Finger transferred hundreds of thousands of dollars from the brokerage accounts to his own personal checking account as large commissions to pay for his own credit card bills, food and entertainment as well as business expenses such as payroll, fees and taxes.

Under a plea agreement, federal prosecxutors have agreed to recommend a sentence of 78 months in prison when Finger is sentenced on Feb. 17.

Comments | More in The Blotter | Topics: U.S. Attorney's Office, wire fraud

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