A former LPL Financial advisor was sentenced in a Boston federal court to 54 months in prison for defrauding elderly and “vulnerable” clients, stealing the victims’ retirement assets.
In February 2023, Paul R. McGonigle pleaded guilty to one count of investment adviser fraud, two counts of money laundering, three counts of wire fraud, one count of mail fraud and one count of aggravated identity theft.
“What Paul McGonigle did is despicable. He preyed on his elderly and vulnerable clients, betrayed their trust, and stole over $1.2 million from their retirement accounts,” said Christopher DiMenna, acting special agent in charge of the Federal Bureau of Investigation, Boston Division. “Last year, investment scams cost consumers nationwide $3.31 billion, and here in Massachusetts, victims reported losing almost $76 million. This case demonstrates the FBI’s commitment to holding fraudsters accountable.”
McGonigle served as a financial adviser for the victims, many of whom were elderly, one of whom had dementia, and another who suffered a traumatic brain injury. Beginning in February 2015, McGonigle caused unauthorized withdrawals from victims’ annuities and induced victims to give him money to invest on their behalf, which he then used for personal and business expenses.
McGonigle posed as clients on calls with their annuity companies and signed their names on forms requesting withdrawals from their annuities. When some of his clients began to ask questions, McGonigle concealed his scheme by falsely assuring clients that their investments were growing.
In addition to the 54-month prison sentence, McGonigle was sentenced by U.S. District Court Judge Nathaniel M. Gorton to two months of supervised release and to pay restitution of $652,987.
McGonigle was barred from the securities industry by FINRA in 2020.