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

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