The operator of an unlicensed investment firm that defrauded 10 investors out of more than $1.8 million pleaded guilty Tuesday to mail fraud and subscribing to a false tax return, according to the U.S. Attorney for the District of Connecticut.
Stephen Goodrich ran Goodrich Financial in Bristol, where between 2006 and 2012, officials say he didn’t invest client funds as represented, using some of the funds to repay previous investors, and more than $600,000 to purchase items for his personal use, which he did not claim on his tax returns.
To hide the money’s true movement, Goodrich gave clients written statements containing false investment values, U.S. Attorney Deirdre M. Daly’s office said.
Goodrich faces a maximum of 23 years in prison and a maximum fine of $3.6 million plus restitution. He also owes $239,443 in federal taxes, including interest and penalties.
He will be sentenced in December.
