Former Morgan Stanley Advisor Admits to Defrauding Elderly Client

Former Morgan Stanley Advisor Admits to Defrauding Elderly Client

Ronald Diaz Faces Severe Penalties After Pleading Guilty to Wire Fraud

A 40-year-old former financial advisor from Tucson, Ronald Diaz, pleaded guilty on July 18, 2024, to charges of Wire Fraud. Diaz’s sentencing is scheduled for September 27, 2024, before United States District Judge Scott H. Rash.

Diaz, who previously worked at Morgan Stanley, engaged in a fraudulent scheme that targeted an elderly client. To lure the victim, Diaz falsely promised an investment opportunity in an “annuity” that purportedly guaranteed a 10% return. Between November 2020 and July 2022, Diaz instructed the victim to transfer a total of $970,000 to his family members, under the guise of investing in the annuity.

Instead of investing the funds, Diaz directed his family members to funnel most of the money back to him. Diaz then misappropriated the victim’s funds for his personal use, which included gambling at casinos, making a down payment on a 2021 Range Rover, paying off credit card debt, remodeling his family pool, and covering his mortgage and other personal expenses. Diaz occasionally made “interest” payments to the victim to maintain the deception and secure additional funds. Ultimately, none of the victim’s money was invested, resulting in a loss of over $867,000.


The impact of Diaz’s fraudulent actions extends beyond the immediate financial harm inflicted on his victim. Such schemes erode public trust in financial institutions and advisors, making individuals more wary of legitimate investment opportunities. This incident underscores the critical importance of vigilance and regulatory oversight in the financial sector to protect vulnerable populations, especially the elderly, from exploitation.

As part of his plea agreement, Diaz is required to pay restitution to the victim’s estate. A conviction for Wire Fraud carries a maximum penalty of 20 years in prison and a $250,000 fine, or both. These severe penalties reflect the gravity of Diaz’s actions and serve as a deterrent to others who might consider engaging in similar fraudulent schemes.

The investigation, which led to Diaz’s guilty plea, was conducted by the Federal Bureau of Investigation. The prosecution is being handled by the United States Attorney’s Office for the District of Arizona, Tucson.

The broader business community must recognize the detrimental effects of such fraudulent activities. Trust is a cornerstone of financial advisory services, and breaches of this trust can have far-reaching consequences, including loss of clients and reputational damage to firms. Morgan Stanley, where Diaz was employed, will need to address this breach of trust by reinforcing their commitment to ethical practices and stringent oversight.

This case serves as a stark reminder of the severe consequences for those who exploit their positions of trust to commit financial fraud, particularly against vulnerable individuals. The U.S. Attorney’s Office and the FBI remain committed to protecting the public from such fraudulent schemes and ensuring that justice is served.