June 11–GUILDERLAND — A financial planner from Queensbury was jailed Wednesday for allegedly stealing $1.26 million from people who invested money with him, prosecutors said.
Frederick E. Monroe Jr., 59, is accused of operating a “Ponzi” scheme in which he took money from new investors to pay off old investors, and spent more than $1 million on his personal expenses, according to state Attorney General Eric Schneiderman.
Monroe is a vice president at Albany-based Capital Financial Planning, LLC, officials said. The investors were people he dealt with through the company.
He faces felony counts of money laundering, grand larceny, securities fraud and scheme to defraud, authorities said.
The charges stem from alleged fraud that dates back to 2008, the Attorney General’s Office said in a news release. Monroe had investors write checks to him, which he deposited into his personal operating account, and used the money to travel and make mortgage and credit card payments, prosecutors said.
Monroe also is accused of falsely telling investors their money was being put in bonds, and creating fake financial statements and distributing them to victims to make it appear their investments were gaining equity.
The charges were brought for three alleged victims, but the investigation was continuing and prosecutors have been in contact with others and the amount that was .
“We are aware of at least 10 victims at this point,” said Nick Benson, a spokesman for Schneiderman.
Monroe was arraigned Wednesday in Guilderland Town Court and sent to Albany County Jail for lack of $300,000 bail. The charges are punishable by up to 25 years in state prison.
A call to Capital Financial Planning was not returned late Wednesday.
(c)2015 The Post Star (Glens Falls, N.Y.)
Visit The Post Star (Glens Falls, N.Y.) at www.poststar.com
Distributed by Tribune Content Agency, LLC.