Have you ever heard the question “if you could have dinner with any person, who would it be?” Often the popular answer is a successful person in order to gain tips on increasing wealth. Financial investors are used for the same reason and much more widely available, offering insight into investments and wealth management. According to court records Mr. William Jack Berg acted as a financial advisor in the Midwest and defrauded over a dozen individuals with his services.
From January 2019 through May 2023 Mr. Berg allegedly defrauded individuals by encouraging them to withdraw money out of previously existing investments or financial accounts and send the funds to Mr. Berg for investments. Instead of investing the funds as stated, documents state Mr. Berg used the money for personal expenses such as: vehicles, jewelry, rent, travel, groceries, gas, clothing, dining out, and an engagement ring valued over $37,000.00. Concealing the scheme Mr. Berg would allegedly make “payments” back to his clients claimed to be dividends but were actually the subsequent fraudulently acquired funds.
In total the targeted individuals provided over $1.5 million that was not truly invested for their personal benefit. A lesson can be learned in the segregation of duties. Allowing a single individual to have complete control over monies can make schemes such as this easier.
Waukee Man pleads guilty to wire fraud and money laundering. (2024, June 13). https://www.justice.gov/usao-sdia/pr/waukee-man-pleads-guilty-wire-fraud-and-money-laundering