(The Center Square) – A Tucson financial advisor has pleaded guilty to defrauding one client and using hundreds of thousands of dollars to gamble, pay off debt, and buy luxury items.
The U.S. Attorney’s Office in Arizona announced Monday that Ronald Diaz, 40, of Tucson, agreed to a guilty plea of wire fraud.
Diaz, while employed as a Morgan Stanley financial professional, posted an investment opportunity to the victim as an annuity that guaranteed a 10% return. According to federal officials, Diaz had the victim transfer $970,000 from 2020 to 2022 to Diaz’ family members who then gave the money back to Diaz.
The announcement said Diaz spent much of the money on gambling, a down payment on a 2021 Range Rover, pool renovations, paying down his mortgage and other personal expenses.
Diaz admitted to paying the victim “interest payments” to entice them into giving him more money. The U.S. Attorney’s Office said none of the victim’s money was put toward any type of legitimate investment.
Federal wire fraud carries a maximum penalty of 20 years in prison and a $250,000 fine, or both. Diaz is scheduled to appear before U.S. District Judge Scott H. Rash for sentencing on Sept. 27.
The Federal Trade Commission announced in February that consumers reported losing more than $10 billion to fraud in 2023 with investment fraud being one of the top-reported types of scams.
