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Financial Advisor Pleads Guilty Laws & Regulations

Financial Advisor Pleads Guilty to Fraud Over Money for Betting

By Lisa Spencer Senior Editor Updated: 16 December 2023

Lisa Spencer Senior Editor

As a Senior Editor at Betting.US, Lisa Spencer is a valuable member of our expert team. With a Master’s degree in Applied Mathematics, Lisa is adept in gambling theory and analyzing odds. She contributes by writing online sportsbook reviews and finding competitive markets to help our readers make an informed choice.

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It has been reported that a certified financial adviser, Christopher Turean from Indianapolis, has pleaded guilty to charges of wire fraud and tax fraud after siphoning $4.6 million from a client’s investment account. This embezzlement was used primarily for sports betting according to reports, as well as for some personal expenses.

Turean, associated with Valeo Financial Advisors in Carmel, Indiana, is said to have committed this fraud over a ten-year period, starting from September 2012 until his activities were discovered in February 2022. The company, referred to as ‘Company A’ in court documents, has openly acknowledged Turean’s dismissal due to the misappropriation of funds in a filing with the Securities Exchange Commission.

An Elaborate Scheme

The elaborate scheme unraveled when prosecutors discovered that Turean had been transferring large sums, totaling $4,692,500, from a client’s account to his own through a limited liability company, SCNT, which he controlled.

The client, identified as Victim 1 in the court filings, was misled into believing that these transfers were for investment in real estate. Turean even went so far as to provide falsified net worth statements, showing an investment of $1.2 million in the “SCNT LLC Real Estate Fund.”

Apart from using the stolen funds for sports betting on platforms like DraftKings and FanDuel, Turean is said to have paid off debts. He is also reported to have misreported his taxable income to the IRS.

This action has led to an additional charge of filing a false tax return. As part of his plea agreement, Turean has agreed to make full restitution to Victim 1, along with paying $1,725,246 to the IRS for the tax discrepancies.

According to Inside Indiana:

Christopher Turean filed a petition Nov. 13 in U.S. District Court in Indianapolis to plead guilty to one count of wire fraud and one count of filing a false tax return.

Turean has eleven years of experience in the securities industry and holds certifications from the Certified Board of Financial Planners. However, this spells the end of his career, and the Board has since revoked his right to use CFP certification marks.

It is thought that Turean’s wire fraud charge alone could lead to a maximum prison sentence of up to 20 years, although a sentencing date has not yet been scheduled. In addition, this could result in a fine of $250,000. On top of this, the tax return charge could come with a three-year prison sentence and a fine of $100,000.

The Need for Regulatory Processes and Monitoring

According to officials, Turean’s case is a stark reminder of the problems that can occur in the financial advisory sector. It demonstrates the need for stringent regulatory processes and monitoring, and the importance of clients being actively engaged and informed about their investments.

Many are concerned that the scandal has not only affected the lives of the direct victims but has also cast a shadow on the integrity of the financial advisory profession, calling for a reevaluation of the checks and balances within the industry.