A Torrington financial advisor admitted to misappropriating about $575,000 from his investment clients.
Lester Burroughs, 60, pleaded guilty on Thursday in Bridgeport federal court to one count of wire fraud related to the apparent misappropriation of funds, according to the Connecticut U.S. Attorney’s office.
The charge carries a maximum of 20 years in prison. Judge Victor A. Bolden has not set a sentencing date for Burroughs, who is currently free on $100,000 bond pending sentencing. As part of his plea, he has agreed to pay restitution in the amount of $575,000 to the victims of his crime.
Burroughs, who was a registered securities broker with the Financial Industry Regulatory Authority, owned Burroughs Investment Group, a full-service financial consulting firm based in Torrington until last month.
Investigators say between 2012 and 2019 Burroughs misrepresented to some clients that their money would be invested in legitimate, guaranteed investment contracts, when he used their money to pay other clients’ business expenses, and other “guaranteed” investment returns.
The case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Heather L. Cherry.
