Former Morgan Stanley Broker, JAMES S POLESE, Pleads Guilty to Fraud

JAMES S POLESE CRD#: 2636427, a 51 year-old Boston-area former Morgan Stanley investment advisor, pleaded guilty April 26, 2018, in federal court in Boston to one count of conspiracy and investment advisor fraud, eight counts of bank fraud, and one count of aggravated identity theft. Sentencing is scheduled for August 2, 2018.
Polese, of Wenham, MA and was accused of using his clients’ funds to make his own investments and to pay personal expenses. In January of 2018, Polese and Cornelius Peterson, 28, of Newton, MA, were charged and agreed to plead guilty.
The court records stated that from approximately 2014 to June 2017, Polese and Peterson misappropriated approximately $500,000 from their clients by transferring funds out of their clients’ accounts without their knowledge or consent.
Some of the information released by the US Attorney’s office included: on Aug. 20, 2014, JAMES S POLESE and Peterson used $100,000 from a client’s account to invest in a wind farm project despite the fact that it was not an investment opportunity authorized by their company. On May 15, 2015, Polese and Peterson used $400,000 from another client’s account to back a letter of credit in support of the wind farm project. On multiple occasions in 2017, Polese transferred funds from a client’s account to pay personal expenses, including college tuition payments and credit card bills. JAMES S POLESE and Peterson were terminated from Morgan Stanley in June of 2017.
According to the US Attorney’s Office, the charges of conspiracy and investment advisor fraud carry a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,00 or twice the gross gain or loss, whichever is greater. The charge of bank fraud carries a sentence of no greater than 30 years in prison, five years of supervised release and a fine of $250,00 or twice the gross gain or loss, whichever is greater. The charge of aggravated identity theft carries a mandatory consecutive term of two years in prison.
FINRA has barred JAMES S POLESE from acting as a broker or otherwise associating with a broker-dealer firm.
According to FINRA’s BrokerCheck, JAMES S POLESE has 9 Disclosures on his report. Polese had been in the securities industry for 21 years and had been listed with 4 firms, the 2 most recent listed below:
05/14/2010 - 07/26/2017 MORGAN STANLEY - BOSTON, MA
08/13/2004 - 05/20/2010 UBS FINANCIAL SERVICES INC - BOSTON, MA
If you were a former client of MORGAN STANLEY OF BOSTON broker, JAMES S POLESE and experienced losses due to his actions or recommendations, contact Soreide Law Group and speak to an experienced securities lawyer at no cost to you regarding the possible recovery of your investment losses through a FINRA arbitration at: 888-760-6552.
Soreide Law Group represents our clients nationwide before FINRA. We operate on a contingency fee basis, no fee to you if no recovery.