Prosecutors: Man defrauded investment customers of millions
TRENTON, N.J. (AP) — A New Jersey man who operated a long-running scheme to defraud investment clients out of millions of dollars has been sentenced to more than eight years in prison.
Scott Newsholme received a 102-month sentence Tuesday. The 43-year-old Farmingdale man had pleaded guilty in April to wire fraud, aggravated identity theft and preparing fraudulent tax returns.
Federal prosecutors say Newsholme has owned and operated at least three different financial advisory and tax return preparation businesses since 2002.
Between 2007 and 2017, he recommended to multiple clients that they give him money for various investments. He used that money for personal expenses, including multiple vehicles, bedroom furniture and debits at casinos.
Newsholme misappropriated more than $3.1 million from his clients, resulting in net investment losses of more than $1.8 million.