A former Morgan Stanley financial advisor from El Paso has been handed a 12-year sentence for executing a fraudulent scheme that siphoned millions from his employer and clients. Jesus Rodriguez de la Cruz, age 46, orchestrated the scheme from May 2018 to August 2021, using a series of deceitful actions to redirect Morgan Stanley and client funds for personal gain, including purchasing a luxury vehicle.
The details of this case, as released by the U.S. Attorney’s Office for the Western District of Texas, reveal an elaborate web of fraud involving false documents and impersonations. Rodriguez de la Cruz took advantage of his position to induce unauthorized transfers from client accounts, including the use of a falsified verbal authorization form to secure a wire transfer of $48,575.36. This misconduct not only defrauded clients but also engineered a tax loss of over $400,000.
In one notable instance reported by the U.S. Department of Justice, the deceit extended to Rodriguez de la Cruz using a client's line of credit to fund the purchase of a Lamborghini, a transfer amounting to roughly $125,000. The total damage inflicted by his fraudulent practices amounted to more than $5.5 million in losses for Morgan Stanley, his now-former employer.
Indicted by a federal grand jury in December 2023, Rodriguez de la Cruz pleaded guilty last November to multiple charges, including wire fraud and aggravated identity theft. “This defendant abused the trust of his clients and his responsibilities as a financial advisory to steal millions of dollars in customer funds in order to enrich himself,” Acting U.S. Attorney Margaret Leachman said, as detailed by the U.S. Department of Justice. She emphasized the severity of the crime, underscoring that justice will be served in the district against perpetrators of such fraud.
