Earlier this month, U.S. District Court Judge Gary Feinerman sentenced Oscar Overbey, Jr., to three and a half years in a federal prison. The charges against Overbey, a former Ameriprise advisor, stemmed from an alleged Ponzi scheme he created to pay off gambling debts and other personal expenses. Investigators believe that from 1996 through 2007, Overbey used his status as a financial advisor to embezzle about $4 million of his clients' money. This resulted in Overbey being barred from the financial industry in 2007 after he was terminated from Ameriprise in 2006. Ameriprise refunded all the clients who had lost money due to Overbey's actions. Overbey was also ordered to pay $3 million in restitution, which will reimburse Ameriprise. During the trial Overbey admitted that he met a lot of clients through his gambling and that, "The lines between my brokerage business and my gambling were often blurred." Once he completes his sentence, Overbey will then be placed on a three-year supervised probation, in which he will be prohibited from entering any casinos or participating in any gambling.
If you believe you have been victimized by securities fraud, financial malpractice, or theft by a FINRA registered broker, please call the securities attorneys of the Costello Law Group at (877) 418-0003 for a free consultation.