Minn. Financial Adviser Charged
.c The Associated Press
MINNEAPOLIS (AP) - Federal authorities charged a financial adviser with mail fraud during an investigation into the disappearance of millions of dollars of client funds.
Federal court documents filed Friday said Douglas Stolba acknowledged to an FBI agent that he used client funds to pay off personal debts, make home improvements and otherwise enhance his lifestyle.
Stolba, 55, turned to gambling to replace the stolen funds but lost even more of his clients' money, according to the agent's affidavit.
Between $6 million and $10 million is believed to have been lost.
Stolba, who was president of Focused Retirement Planning Inc., gave authorities the names of 25 clients whose money was involved and acknowledged that the illegal activities dated to 1976. Focused Retirement Planning, based in St. Louis Park, was a registered representative of ING Financial Advisers.
Stolba, through lawyer Deborah Ellis, has declined to comment.
His business partners, Charles Schons and son Mitchell Stolba, also declined to comment. Their counsel, Joseph Dicker, said the partners also were victims in the case.
ING said it is trying to account for money entrusted to Stolba and is cooperating with outside agencies pursuing the allegations.
ING said Stolba ceased to be a registered representative after he admitted depositing customer funds into a personal account.
A federal lawsuit already has been filed seeking class status for more than two dozen people seeking reimbursement from Stolba and ING. |
