TRENTON, N.J. — Federal prosecutors say a New Jersey man defrauded investment clients out of more than $1.8 million.
Scott Newsholme faces charges of mail fraud, wire fraud and securities fraud.
The 42-year-old Farmingdale man was arrested Wednesday morning by federal agents and was due to make his initial court appearance later in the day. It wasn’t known if he’s retained an attorney.
Newsholme has owned and operated at least three different financial advisory and tax return preparation businesses since 2002.
Authorities say that between 2007 and 2016, he recommended to multiple clients that they give him money for various investments. He then allegedly used that money for personal expenses, including multiple vehicles, bedroom furniture and debits at casinos.
Prosecutors say that in many cases, the investments Newsholme recommended didn’t even exist.