Farmingdale man bilked clients out of millions in fraud scheme
A Monmouth County investment adviser finds himself in trouble with the U.S. Attorney's Office and D.O.J. for defrauding clients out of millions of dollars, forging an attorney's signature and preparing false tax returns.
Scott Newsholme, 43, of Farmingdale has plead guilty to the fraud scheme and could face up to two-decades in prison.
He plead guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to wire fraud, aggravated identity theft and preparing fraudulent tax returns.
In September 2017, Newsholme was charged by criminal complaint with mail fraud, wire fraud, and securities fraud, and was released on bail.
But a month later more charges were tacked on after law enforcement officials found that he was continuing to run his scheme while out on bail, so an amended criminal complaint with mail fraud, wire fraud, securities fraud and aggravated identity theft charges were added to the list.
His bail was also revoked and he was detained pending trial.
All together his scheme had him misappropriating a total of over $3,100,000.00 from his clients equaling net investment losses of more than $1,800,000.00
The fraudulent returns Newsholme prepared claimed inflated deductions for unreimbursed employee business expenses, charitable donations, and medical expenses to which his clients were not entitled, according to the U.S. Attorney's Office.
The wire fraud charge would give him the biggest sentence after Newsholme plead guilty resulting a maximum potential penalty of 20 years in prison and a $250,000 fine.
The aggravated identity theft charge carries a mandatory sentence of two years in prison, which must run consecutive to the sentences on the other two counts.
The false tax return charge carries a maximum potential sentence of three years in prison and a $250,000 fine.
His sentencing is scheduled for July 19, 2018.
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