Jeffrey M. Knutsen, a financial advisor from Bellingham, Washington, was sentenced to 51 months in prison with three years of supervised release after accusations of wire fraud. Along with prison time, U.S. District Judge James L. Robart also ordered Knutsen to pay $251,892 in restitution to the clients from whom he embezzled money. Knutsen owned and operated his own firm, Bellwether Financial Services, which he told clients was switching to an online approach sometime after 2005. In 2005, FINRA barred him for allegedly converting $89,973.16 of client funds to his own use. Knutsen did not disclose to his clients that he had been barred from the securities industry. He continued to mislead investors by trading through online sites such as E*Trade and TD Ameritrade. Knutsen set up accounts in his clients' names and had complete control over the account and made sure each account would allow him check writing privileges. Over a period of almost eight years, without his clients' knowledge or consent, he wrote more than 200 checks on their accounts.
If you have had any dealings with Jeffrey Knutsen or 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.