Former Morgan Stanley Advisor Sentenced to 12 Years in Prison for Multimillion-Dollar Fraud

Posted on April 21st, 2025 at 11:14 AM
Former Morgan Stanley Advisor Sentenced to 12 Years in Prison for Multimillion-Dollar Fraud

From the desk of Jim Eccleston at Eccleston Law

Jesus Rodriguez de la Cruz, a former Morgan Stanley advisor, has been sentenced to 12 years in federal prison for orchestrating a complex fraud scheme that misappropriated millions from clients and the firm itself, AdvisorHub reports.

According to the Department of Justice and the IRS, Rodriguez defrauded clients and Morgan Stanley out of more than $5.5 million between May 2018 and August 2021. He used the stolen funds for personal expenses, including the purchase of a Lamborghini, and failed to report the illicit gains on his tax returns.

According to AdvisorHub, a review of court documents details how Rodriguez falsified documents and impersonated clients to initiate unauthorized wire transfers, directing funds to bank accounts under his control or those of family members.

In one instance, he forged a form authorizing a $48,575 transfer supposedly for a real estate purchase. In another, he used $125,000 from a client’s account to purchase a luxury vehicle. AdvisorHub also reports that a separate SEC civil case accuses him of misappropriating over $3.4 million from at least 10 clients.

 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: james eccleston, eccleston law

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

September 11, 2025
Montana Federal Judge Allows Family's Premium Financing Claims to Proceed

A federal judge in Montana has allowed a family to move forward with negligence, fraud, and unjust enrichment claims tied to a premium-financed life insurance arrangement valued at $67.5 million.

September 10, 2025
Arizona Man Sentenced to 30 Years for Multi-Million Dollar Ponzi-Style Fraud

An Arizona man has been sentenced to 30 years in prison for running a Ponzi-style investment scheme that defrauded more than 100 victims out of millions of dollars, according to the U.S. Attorney’s Office for the District of New Mexico.

September 9, 2025
Easterly ROCMuni Fund's Steep Decline Spurs Potential Investor Lawsuits

The Easterly ROCMuni High Income Municipal Bond Fund (RMHIX) has suffered a dramatic collapse, losing nearly half its value in June and now trading at a net asset value (NAV) of $2.95 per share.