Investment adviser cheated three elderly siblings out of $529,780

A former investment advisor from Union County, New Jersey, was arrested today for allegedly stealing more than $500,000 from multiple clients to fund his gambling and personal expenses, and the New Jersey Bureau of Securities also revoked the con artist’s registration as an investment adviser for violating New Jersey’s securities laws.

Mario E. Rivero Jr., 38, of Elizabeth, New Jersey was charged by complaint with two counts of wire fraud, one count of investment advisor fraud, and one count of securities fraud. Rivero was arrested at his home and is scheduled to appear this afternoon before U.S. Magistrate Judge Michael A. Hammer in Newark federal court.

According to U.S. Attorney Philip R. Sellinger, documents filed in this case and statements made in court, Rivero, while serving in his capacity as an investment advisor employed by Wells Fargo, misappropriated at least $529,870 from four clients between April 2018 through November 2020.

Rivero, who had been entrusted to manage client funds responsibly, instead perpetrated a scheme to defraud multiple clients.

He obtained his clients’ money under the fraudulent pretense that he would invest the funds, but instead, Rivero unlawfully diverted the funds to enrich himself and others.

Each of the wire fraud counts carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. The investment adviser fraud count carries a maximum potential penalty of five years in prison and a $10,000 fine, or twice the gross gain or loss from the offense. The securities fraud count carries a maximum penalty of 20 years in prison and a $5 million fine.

Attorney General Matthew J. Platkin said that Rivero made misrepresentations to at least four of his senior Wells Fargo customers to convince them to turn over at least $529,780 in cashier’s checks, over which he ultimately gained control for personal uses.

According to Platkin, Rivero convinced these elderly clients that their money would be invested in his mother’s and friend’s businesses. However, investigators found that Rivero used the majority of the funds for personal expenses that included gambling at casinos, restaurant meals and car payments.

The customers Rivero allegedly defrauded include three elderly siblings who have an eighth-grade level of education, did not speak or read English and had diminished capacity.

Prior to becoming their financial professional, Rivero and his family were friends with the siblings for more than ten years, having spent time in each other’s homes and celebrated holidays together.

In a Summary Revocation Order issued today, Acting Bureau Chief Amy G. Kopleton asserted that from January 1, 2018 to November 30, 2020, Rivero engaged in dishonest and unethical business practices in the sale of securities, and defrauded at least four Wells Fargo customers in the amount of at least $529,780.

“Defrauding elderly and other vulnerable clients of their hard-earned savings is a terrible betrayal of trust and a flagrant violation of our investor protection laws,” said Platkin. “We are committed to protecting all New Jersey investors, and have zero tolerance for investment professionals who seek to exploit seniors, individuals with limited English language proficiency, and others at heightened risk of fraud.”

“Rivero took advantage of vulnerable investors, some of whom had limited English-speaking abilities,” said Sean P. Neafsey, acting director of the Division of Consumer Affairs. “Unscrupulous individuals who betray their clients for personal gain undermine the financial system, and we will continue to enforce the law to ensure the integrity of New Jersey’s financial industry.”

The investigation also found that Rivero used some of the misappropriated funds to trade in options and in less than two weeks lost all the funds in trading.

“Rivero took advantage of family friends and other elderly clients who relied on him for guidance and advice to finance his personal expenses,” said Kopleton. “Rivero’s conduct was illegal and reprehensible. Today’s action sets an example to anyone who attempts to prey on older investors.”

On June 4, 2021, Rivero signed an Acceptance Waiver and Consent Letter with the Financial Industry Regulatory Authority barring him from associating with any FINRA members in any capacity.