Indiana financial advisor deducts $4.6 million in sports betting and expenses
A fraudulent Indianapolis financial advisor looted $4.6 million from clients' investment accounts and posed as a sportsbook, according to prosecutors. He pleaded guilty this week to wire fraud and tax fraud.
Christopher Turean was a certified financial planner at Valeo Financial Advisors in Carmel, Indiana, a suburb of Indianapolis, from September 2012 until February 2022, when the fraud was discovered.
Valeo is not mentioned by name in court documents, referring to it only as "Company A." But in February 2022, the company fully disclosed in a public filing with the U.S. Securities and Exchange Commission that Turin was fired for "misappropriation of customer funds."
DraftKings, FanDuel bettors
According to prosecutors, this involved Turin transferring $4,692,500 from a client identified only as Victim 1 in court records. Starting in July 2019, the funds were transferred in tranches to SCNT, a limited liability company controlled by Turean. From there he transferred it to his personal account.
The client agreed to the transfer because he believed Turin had his best interests at heart, according to court documents.
At the same time, Turin falsely represented to the victims that funds invested with SCNT would be invested in real estate. He even filed a false financial statement stating that Victim 1 invested $1.2 million in the "SCNT LLC Real Estate Fund," which consisted of "five properties."
According to the plea agreement, Victim 1 became a Turean client in 2015 and the defendant initially "invested cautiously, typically in real estate."
But prosecutors say that beginning in July 2019, Turin began using the victims' money as his personal piggy bank, paying off debts, and "frequently" operating on DraftKings and Fanduel, among others. Sports betting on the website.
He also invested more than $1 million of Victim 1's funds in a home equity line of credit related to his personal residence.
Tax Evasion
Turin lied about his taxable income to the IRS and was eventually charged with filing a false tax return. As part of the plea agreement, he agreed to make full restitution to Victim 1 and pay an additional $1,725,246 to the IRS.
Turan has 11 years of experience in the securities industry, according to the SEC. But in September 2022, the Certification Commission for Financial Planners announced that it would revoke Turin’s right to use the CFP certification mark.
The wire fraud charge carries a maximum penalty of 20 years in prison. The court has not yet set a sentencing date.
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Source: www.casino.org
