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

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We just wanted to say thanks for your work in helping us get back some of the money we lost. We are not by any means rich, but we have saved some money and we have done so through a tight-fisted approach to most everything we do. So losing a significant chunk of money hurt…especially at a time when everyone else was growing their accounts. We really appreciate the work you did.

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