Richard Mark Schmerman, a former investment adviser representative, was sentenced to 5 years in prison and 7 years of probation for stealing more than $3 million dollars in client funds. Schmerman must also pay more than $3 million dollars in restitution to his victims.
Schmerman is a former registered securities salesman and investment adviser representative operating under Diversified Financial in Arizona. Schmerman used client investment funds to pay for personal expenses including a single payment of more than $400,000 to a civil judgment issued against him.
Schmerman also impersonated some of his clients to gain access to their investment accounts.
The Arizona Corporation Commission’s Securities Division investigated this case.