PHOENIX — A former Morgan Stanley financial advisor who defrauded an elderly client out of nearly $900,000was sentenced to 22 months in prison, the United States Attorney’s Office for the District of Arizona announced Friday.
Details of the Fraud
Ronald Diaz, 41, of Tucson, pleaded guilty on July 18, 2024, to a wire fraud scheme in which he pocketed $867,000between November 2020 and July 2022 by falsely guaranteeing his client a 10% return on investment.
Diaz convinced the unidentified victim to transfer $970,000 to his family members to disguise the scheme. Instead of investing the money, Diaz used the funds for personal expenses, including:
- Gambling at casinos
- A down payment on a 2021 Range Rover
- Paying off credit card debt
- Remodeling his family’s pool
- Making mortgage payments
Sentencing and Restitution
U.S. District Judge Scott H. Rash sentenced Diaz to 22 months in federal prison and ordered full restitution of $867,510.37 to the victim. The additional $500 in restitution was included due to interest payments Diaz made while misleading the client into wiring money.
Diaz had faced a maximum sentence of 20 years in prison and a $250,000 fine for wire fraud.
No further details have been released at this time.
