Richard Schwartz of Kokomo, Indiana Accused of Stealing Investor Money
Richard Schwartz, a former investment adviser in Kokomo, Indiana, was accused of stealing investor money and running a fraudulent scheme. Schwartz took his own life in August, shortly after allegations of fraud and misconduct surfaced in the media.
Investigation by securities lawyers Alan Rosca and Joe Peiffer indicates that Schwartz organized an investment advisory firm, RAS & Associates, which purported to profitably invest his clients’ savings.
In reality, rather than invest his clients’ savings as promised, Schwartz perpetrated a fraudulent Ponzi scheme, according to the Iowa authorities. Last week, the Iowa Secretary of State accused Schwartz of stealing close to $10 million, and perhaps more, from investors across the country.
Most of the investor money appears to be missing: rather than invest his customer’s life savings, Schwartz allegedly spent them to finance his lavish lifestyle, which reportedly included private jet travel, frequent parties, and ultra-luxury cars.
Attorneys Alan Rosca and Joe Peiffer have identified a financial service organization they believe may be liable for the losses suffered by some of Schwartz‘ investors.
“When Ponzi schemes collapse, there is typically very little money left in the scheme itself, to be distributed back to investors. In cases like this, third parties often assist, or make possible, the perpetration of the scheme,” said attorney Alan Rosca.
Evidence uncovered by attorneys Alan Rosca and Joe Peiffer indicates that, during most of the time Richard Schwartz allegedly stole investor money, he worked under the supervision of a financial institution.
“Financial industry members have a duty to supervise their agents and prevent them from victimizing the investing public,” said attorney Joe Peiffer.