Shutterstock / Roman Motizov
Authorities allege that Pettit transferred client funds to his personal bank accounts instead of into financial products in an effort to enrich himself.
Pettit allegedly defrauded wealthy clients, most of whom were elderly. Instead of investing his clients' funds in financial products, including high-yield bonds, as promised, he instead wired these funds to his personal bank accounts to enrich himself, authorities claim.
“Pettit would use his victimized clients’ funds to pay other client debts as well as to support an extravagant lifestyle,” according to a Justice Department statement. “The scheme resulted in an estimated loss to the victims of between $20 million and $65 million.”
The disbarred attorney pleaded guilty to six felony charges, including three felony counts of wire fraud and three felony counts of money laundering. Pettit is set to be sentenced on Jan. 11, 2024. He faces anywhere between two and 20 years in prison.
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