Kitchener (September 17, 2019) – Former financial planner and broker, Ronald Schwartz who was contracted to sell Sun Life Financial products defrauded eleven of his clients out of more than $600,000 between 2011 and 2014. On Monday, the Kitchener man pleaded guilty and was sentenced to 4 years in prison.
Ronald Schwartz was a third party financial planner and broker who sold Sun Life Financial products. Between 2011 and 2014, he defrauded eleven of his clients out of a total of $621,000, CTV News reported. From ten of his clients, he withdrew parts of their investment without their knowledge. In the case of one client, he cashed out $150,000 while ensuring the client to reinvest the amount elsewhere. In all cases, he directed the funds into his own bank account. Schwartz’s scheme was revealed because one client noticed inconsistencies, according to the police.
The now 67-year-old man spent most of the money he has stolen. In January when he was arrested, the majority of the fraudulently obtained money was gone. Sun Life Financial paid back the 10 victims who were not aware that their money was withdrawn. The Bank of Montreal, where Schwartz deposited the money, provided the funds including the missed out interest. The victim who was informed about the cash out of her investment was not compensated by the financial institute.
On September 16, the Kitchener man pleaded guilty and the judge agreed to the joint submission presented by the Crown attorney and the prosecutor. Schwartz has been sentenced to 4 years in prison and has to pay back the victim who has not been compensated yet. Within 10 years, he has to reimburse the client’s $150,000 as well as the compensation money the financial institutions have already paid his victims.