According to the indictment, Madison solicited funds from his clients for several different investments. However, instead of investing the funds as promised, Madison used $1,129,457 of the funds for his own personal benefit, including payment of the mortgage on his personal residence, country club dues and expenses, personal tax obligations, credit card payments, and repayment of personal and business loans.
The indictment details five different investments Madison allegedly promised to make for his clients, including the capital funding for a healthcare company, loans to a businessman in Utah, bond investments, investment in establishing a trading platform, and investment in an oil well in Australia.
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Meanwhile, in New York, a former stockbroker who was alleged to have defrauded Merrill Lynch out of a $780,000 bonus was sentenced last week to two to six years in prison for the con. Steven Mandala was contrite at his sentencing, when he stood before Justice Carol Berkman in Manhattan Supreme Court. "The scars of my iniquities I will carry with me for a lifetime," the 29-year-old told the court.
However, Mandala was not quite so serious in May when, according to the New York Daily News, he grinned and giggled while pleading guilty to grand larceny and identity theft charges.