PHOENIX — A former Arizona investment adviser faces five years in prison for stealing more than $3 million from his clients.
The state Attorney General’s Office says the prison term for 58-year-old Richard Mark Schmerman is required by an agreement under which he pleaded guilty Wednesday to theft and fraud charges.
According to an indictment charging Schmerman, he used client investment money to pay personal expenses including a single payment of over $400,000 to a civil judgment issued against him.
The indictment also said he impersonated clients to gain access to their investment accounts after his access had been terminated due to allegations he had co-mingled client and personal funds.
The Arizona Corporation Commission’s Securities Division investigated the case. The commission revoked Schmerman’s license in 2014.