SEC Charges Brokerage Assistant with Stealing Funds from Elderly Clients
The Securities and Exchange Commission has charged Kimberly Sredich, a sales assistant at the now closed Worklife Wealth Management Inc., with misappropriating approximately $340,000 from the firm’s customers.
The Securities and Exchange Commission has charged Kimberly Sredich, a former sales assistant at Worklife Wealth Management Inc., with misappropriating approximately $340,000 from the firm’s customers. Most of the account holders were elderly, ranging in age from 67 to 91 years old.
In a parallel action, the U.S. Attorney’s Office for the Eastern District of Michigan filed criminal charges against Sredich, who was recently arrested by the FBI.
Prior to being terminated in July 2018, Sredich was permitted to communicate directly with brokerage customers and had direct access to customer brokerage accounts. Worklife’s owner was affiliated with American Portfolio Financial Services.
The SEC’s complaint alleges that between August 2014 and June 2018, Sredich misappropriated at least $339,725 from at least 15 customer brokerage accounts in 41 separate check disbursements.
Most of the checks were made payable to “Michigan Elite,” an unregistered business owned by Sredich and her husband. The SEC claims that the couple used the funds for personal expenses, including mortgage payments, credit cards bills, fast food, and large cash withdrawals.
Sredich’s brother, Michael E. Dolan (aka Michael Doolan), was also named as a co-defendant in the parallel criminal complaint for helping his sister in the alleged scheme.
The complaint alleges that she transferred approximately $32,000 in 11 wire transfers to his bank account before the funds were transferred to her personal bank account. The complaint also alleges that a number of forged distribution forms instructed American Portfolio Financial Services to mail checks to Dolan’s home and work address.
The criminal charges include conspiracy to commit wire and mail fraud, wire fraud – aiding and abetting, and money laundering. If convicted of money laundering, Sredich must forfeit two residential properties.
The SEC is seeking a permanent injunction against Sredich to enjoin her from violating certain provisions of federal securities laws, disgorgement of ill-gotten gains plus interest, and civil penalties.
