An ex-Morgan Stanley financial advisor from Tucson has admitted to conning an elderly client out of nearly a million dollars, the U.S. Attorney’s Office announced. Ronald Diaz, 40, pled guilty to wire fraud on July 18, acknowledging he swindled the money through a false investment opportunity promising a "guaranteed" 10% return, as per the statement from the Department of Justice.
Investigations revealed the depths of deception, wherein Diaz convinced his victim to pour $970,000 into illusory annuities between November 2020 and July 2022. To cover his tracks, he had the victim send the funds to Diaz's family members, who then returned most of it back to him, according to the Justice Department’s press release. Under the illusion of the scheme, the victim made the transfers.
Instead of investing the sum, the funds financed Diaz's lifestyle, including gambling excursions, swanky vehicles, lavish home improvements, and other personal bills. In an effort to sustain the deceit, Diaz occasionally paid "interest" to the victim. This ruse led the victim to lose over $867,000 by the end of the fraudulent scheme. As part of his plea agreement, Diaz is set to make restitution to the victim’s estate.
The wire fraud charge carries a potential sentence of up to two decades in prison along with a fine of up to $250,000. Diaz is expected to face sentencing on September 27. The FBI conducted the investigation, while the prosecution is managed by the United States Attorney’s Office, District of Arizona, Tucson. In the Justice Department's release, they detail how Diaz's actions ultimately robbed an elderly person of their financial security.
