TRENTON, N.J. — A New Jersey man has admitted operating a long-running scheme to defraud investment clients out of millions of dollars.
Scott Newsholme pleaded guilty Wednesday to wire fraud, aggravated identity theft and preparing fraudulent tax returns. The 43-year-old Farmingdale man faces up to 25 years in prison when he’s sentenced July 19.
Federal prosecutors say Newsholme has owned and operated at least three different financial advisory and tax return preparation businesses since 2002.
Authorities say that between 2007 and 2017, he recommended to multiple clients that they give him money for various investments. He then allegedly used that money for personal expenses, including multiple vehicles, bedroom furniture and debits at casinos.
Newsholme misappropriated more than $3.1 million from his clients, resulting in net investment losses of more than $1.8 million.