Defendant made representations that he would invest victims’ money in venture capital startups and instead used for personal expenses, including alimony payments
May 24, 2013
Reno, NV – Nevada Attorney General Catherine Cortez Masto
announced that Jack Albert Schwartz, 68, of Reno, has been sentenced for theft
in a case investigated by the Secretary of State’s office involving over $1
million embezzled from eight different victims. Schwartz pleaded guilty
to one count of theft as part of a plea negotiation to resolve numerous felony
charges.
“Securities fraud is an ongoing issue in Nevada and can be extremely
difficult to recognize,” said Masto. “We appreciate the efforts of the Nevada
Secretary of State’s office in operating the investigation along with our
office. My office will continue our work to protect Nevada consumers and
prevent perpetrators from committing securities scams.”
“Mr. Schwartz’s criminal actions were bold, but our investigators were thorough in their search,” said Secretary of State Ross Miller. “The prosecution from the Attorney General’s office resulted in a fitting punishment for Mr. Schwartz.”
Judge Connie Steinheimer sentenced Schwartz to 120 months in the Nevada Department of Corrections, and ordered Schwartz to pay $1,005,000 in restitution, and a $10,000 fine.
Jack Albert Schwartz is an attorney and non-registered securities representative who used his knowledge and skill to victimize eight people with his investment scams, with a total loss of $1,000,500. He represented to the victims that their monies would be invested in startup companies with the potential for a huge return on their investments. In fact, Schwartz was not authorized by these companies to collect investor monies. Instead, the money he took was deposited into 12 different bank accounts and used to pay his mortgage, alimony payments to his ex-wife and other personal expense.
Schwartz repeatedly assured the victims that everything was going well and the investments were proceeding according to the plan. He made assurances to the earlier victims while he continued to accept money from later victims.
The case was prosecuted by Eric Nickel of the Criminal Fraud Unit of the Attorney General's Office.
| JACK ALBERT SCHWARTZ |
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(Photo courtesy of Washoe
County Sheriff’s Office) |
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