Financial Advisor Sentenced to Four Years in Prison for Defrauding 87 Year Old Client
United States Attorney's Office
District of Oregon
February 8, 2005
The United States Attorney's Office for the District of Oregon, and the Portland Division of the Federal Bureau of Investigation, jointly announce the sentencing of a financial advisor who defrauded a client out of more than $400,000 and used the stolen money to buy a beachfront condominium in the Central American country of Belize.
JOHN ANTHONY WILLIAMS, age 50, is a financial advisor and estate planner who worked in Eugene, Oregon. One of his clients was Loyd Stubbs. Stubbs is a retired sheep farmer in Brownsville, Oregon. In 1998, Stubbs inherited more than $400,000 after his brother died. Shortly after that, WILLIAMS sold three annuities to Loyd Stubbs, earning a $30,000 sales commission. At this time, Loyd Stubbs' mental and physical health began deteriorating. Aware of these vulnerabilities, WILLIAMS concocted a scheme to defraud Stubbs out of the money he had invested in the annuities.
In July 1999, WILLIAMS obtained a power of attorney naming him as the agent for the 87 year old Loyd Stubbs. WILLIAMS then misused that power of attorney by secretly opening a private mail box in Stubbs' name, as well as a joint bank account. WILLIAMS then had Loyd Stubbs sign a number of documents, some of which cancelled the annuities. WILLIAMS faxed these documents and the power of attorney to the annuity company, and requested that the face value of the policies, $415,000, be sent immediately to the joint bank account. Loyd Stubbs was not aware of this fraudulent conduct.
In late July 1999, the annuity company, unaware of the fraud, liquidated Stubbs' annuity policies and sent the proceeds to the joint bank account. WILLIAMS quickly transferred the funds to his own bank account. WILLIAMS then formed an offshore company in the country of Belize, opened a bank account at the Bank of Belize, and wire transferred the stolen funds to Belize. In October 1999, WILLIAMS went to Belize, purchased a beachfront condominium, and lived there for six months.
WILLIAMS returned to Oregon in 2000 and, in July 2000, he was caught by the Roseburg Police Department attempting to obtain a social security card in the name of a dead man. Further investigation determined that WILLIAMS had several pieces of false identification from Belize and was preparing to move out of the United States under a false identity. WILLIAMS eventually pleaded guilty to misdemeanor identity theft in state court. At that time, no one was aware that WILLIAMS had stolen $415,000 from Loyd Stubbs.
In 2002, a relative of Loyd Stubbs first discovered the funds missing from the annuities and notified the Federal Bureau of Investigation. The FBI then commenced an investigation to unravel the several layers of financial transactions conducted by WILLIAMS to conceal his fraud.
The FBI investigation was successful and, in October 2003, a federal grand jury in Eugene, Oregon indicted WILLIAMS, charging him with several fraud related crimes. On April 15, 2004, after a three day trial, a jury convicted WILLIAMS on four counts of wire fraud, three counts of mail fraud, three counts of money laundering and one count of foreign transportation of stolen money.
United States District Judge Michael Hogan presided over the trial and today sentenced WILLIAMS to serve 51 months in federal prison. Judge Hogan further ordered WILLIAMS to pay full restitution to his victim.