Well-known 401 (k) fiduciary advocate, Matthew D. Hutcheson, received a 210 month sentence after being found guilty of seventeen counts of wire fraud after an eight day trial. The U.S. attorney's office claims that Hutcheson took $5.3 million from about 250 of his clients. Hutcheson was also ordered to pay that amount in restitution. According to federal prosecutors, from 2010 through 2011, Hutcheson's scheme netted him profits of more than $5 million. Hutcheson used false account statements to deceive his victims into believing that their funds were being legitimately invested.
Charles Adams, a former advisor for Raymond James Financial Inc., was accused of insider trading by the Securities and Exchange Commission (SEC). The accusations were filed in July in the United States District Court for the Eastern District of Michigan. Raymond James Financial was also named in the case as an alleged beneficiary of Adams' conduct. According to the SEC complaint, Adams, based upon information provided by one of his clients, made hundreds of thousands of dollars on stock and option transactions. The SEC alleges that Adams made transactions through two customer accounts.