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Former Pierce County man pleads guilty to bilking elderly client

Post by Adam Lynn / The News Tribune on June 22, 2012 at 2:33 pm with 5 Comments »
June 22, 2012 2:33 pm

A former Pierce County resident now living in Colorado pleaded guilty today in U.S. District Court to stealing money from an elderly client.

Federal prosecutors said Michael D. Montgomery, 43, took as much as $1 million from the man, who lived in the Tacoma area until his death in 2006.

Montgomery served as the man’s financial advisor and later as trustee of his revocable living trust, prosecutors said. In that position, Montgomery transferred money between the victim’s Charles Schwab account and bank account, then wrote himself checks, prosecutors said.

Montgomery claimed the money was for services rendered, but he never provided the victim’s family with an accounting and also failed to report the income no his federal tax returns, prosecutors said.

He is to be sentenced in September on one count each of wire fraud and filing a false tax return.

Leave a comment Comments → 5
  1. NakedRat says:

    The worst kind of thief is one who preys on those who are vulnerable and can’t fight back. I hope this worthless piece of trash is put away for a long time. And when he finally gets out of jail, his, uh, “financial advisor” will be happy to get him back on his feet.

  2. veritatem says:

    From Washington Division of Securities in 2009:

    On September 23, 2009, the Securities Division entered a Final Order against Michael D. Montgomery (“Montgomery”). The Securities Division had previously issued a Statement of Charges and Notice of Intent to Revoke Securities Salesperson and Investment Adviser Representative Registration against Montgomery on June 30, 2009. The Securities Division finds that Montgomery engaged in dishonest and unethical practices while working as a securities salesperson and investment adviser representative. The Securities Division finds that Montgomery collected fees for power of attorney and trustee services provided to an elderly client; that Montgomery signed promissory notes in 2003 and 2004 in which he borrowed up to $546,000 from the same client; that between January and August of 2006, Montgomery wrote $105,070 in checks to himself from the client’s accounts, purportedly for Power of Attorney services; that following the client’s death in July 2006, Montgomery wrote $225,982 in checks to himself from the client’s accounts, purportedly for estate services; and that Montgomery failed to disclose these activities to his employing firms as required by NASD Conduct Rule 3030. The Securities Division finds that these activities are dishonest and unethical business practices under WAC 460-22B-090 and RCW 21.20.110(1)(g). The Final Order revokes Montgomery’s securities salesperson and investment adviser representative registrations. Montgomery has a right to judicial review of the Final Order.

    Why is he finally being prosecuted in Federal Court? Why didn’t Washington go after him? We need to get this kind of scum off of the street.

  3. mattersnot1 says:

    This kind of scum is operating in Washington Superior Courts every day. We call it “ESTATE RAPE’.

  4. Do not fret!If convicted of anything,more than likely the sentence would be 30 days of comunnity service.Probably would not have to make any restitution either.

  5. elderjustice2010 says:

    So the Feds prosecute yet when a police report is filed by a former federal criminal investigator naming a prominent Tacoma politician and his non profit sister who is a milliion dollars in debt who looted over $800,000 and changed beneficiaries and stole an annuity from their mother TPD refuses to investigate! This is politicial corruption! The same Democrat politician tries to get Dicks involved so his mom can go on medicaid, which is a form of fraud. The same prominent Democrat gets city of tacoma money while TPD refuses to investigate elder exploitation by your good o’l boy Democratic Tacoma politician………

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