Ex-Adviser Gets Five Years in Prison for Stealing $3.1M from Clients

Posted on July 9th, 2019 at 5:20 PM
Ex-Adviser Gets Five Years in Prison for Stealing $3.1M from Clients

From the Desk of Jim Eccleston at Eccleston Law LLC:

A U.S. District Court judge in Seattle sentenced former adviser, Dennis Gibb, to five years in prison for theft, wire fraud and falsification of records, having defrauded his clients for over a decade.

From 2007 until 2018, Gibb invested about twenty clients in a private fund called Sweetwater Income Flood through his firm, Sweetwater Investments, based out of Redmond, Washington. According to the SEC's cease-and-desist order, Gibb stole $3.1 million of the $7.3 million they invested. Gibb used the stolen funds to pay for his own business and personal expenses, such as mortgage and car payments.

To mask the fraud, Gibb provided victims with false account statements and tax documents, including providing false records to the SEC while under investigation in 2018. In addition to serving a five year prison sentence, Gibb was court ordered to forfeit a money judgment of $3.1M, to pay of restitution of $4.2M, and to be barred from the industry by the SEC.

The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial investors and advisors including Securities FraudCompliance ProtectionBreach of Fiduciary DutyFINRA Matters, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.

Related Attorneys: James J. Eccleston

Tags: james eccleston, eccleston law, eccleston law llc, eccleston, wire fraud, falsification of records, sec, cease-and-desist, dennis gibb

Return to Archive

TESTIMONIALS

Previous
Next

Thank You from the bottom of our hearts for all you have done for us. When we realized this was a very bad investment - we did not know where to turn for help. Then we received your name. When we called you - you were so kind to us and then agreed to help us. For this we are so very grateful. The world would be a much nicer place if there were more people like the two of you in it. We will always remember all the help and kindness you have shown us. Thank you so very very much for everything.

Wayne and Judy S.

LATEST NEWS AND ARTICLES

August 16, 2022
SEC Warns Financial Advisory Firms Regarding Conflicts of Interest Tied to Compensation

The Securities and Exchange Commission (SEC) has sent a warning to financial advisory firms that they must go above and beyond solely disclosing conflicts of interest related to employee pay programs in order to avoid regulatory scrutiny. 

August 15, 2022
FINRA Proposal Would Permit Private Homes to Serve as Non-Branch Offices

The Financial Industry Regulatory Authority (FINRA) has filed proposed changes to FINRA Rule 3110 with the Securities and Exchange Commission (SEC).

August 12, 2022
SEC Charges J.P. Morgan, UBS, and TradeStation for Deficiencies Pertaining to the Prevention of Customer Identify Theft

The Securities and Exchange Commission (SEC) has charged J.P. Morgan Securities, UBS Financial Services, and TradeStation Securities over deficiencies in their programs designed to prevent client identify theft, which violates the SEC’s Identity Theft Red Flags Rule, or Regulation S-ID.