Consumer Alert: Investment adviser scammed clients out of their life savings
Retired investors trusted this man for decades and then one day he stole their life savings.
Kevin James was a trusted investment adviser for decades, but this Dr. Jekyll and Mr. Hyde ended up targeting his most vulnerable clients and stealing their life savings.
James stole more than $1 million from investors who trusted him and he used the money for himself.
Postal inspectors say the worst part was who he chose as victims.
"Most of his clients are in their 70's and 80's and trusted him for numerous years," says Kerry Jaskolski, a U.S. Postal Inspector.
James sold them on what he claimed was a new investment with a high rate of return.
"Kevin James told them to cash out their life insurance policies and annuities and use that money to re-invest in a program called FSP. To our knowledge that program does not exist," says Jaskolski.
More than 15 people lost $1.4 million. Where did the money go?
It all went to James to pay for his homes, credit cards, vacations, and tickets to sporting events.
"All of these victims are elderly and have given this individual their entire life savings, so most of these victims are out of this money and worried about how they are going to live their life," says Jaskolski.
Some important advice from postal inspectors, do your homework before investing.
"In this case, he gave no documentation to any of the victims regarding FSP's plan," says Jaskolski.
Also, be wary of any investment promising huge returns.
"No adviser is ever going to guarantee a higher rate of return or percentage you will receive," says Jaskolski.
Kevin James was sentenced to 10 years in a federal prison for securities fraud, mail fraud, and money laundering.