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Baltimore, Maryland – Eddy Blizzard, age 45, of Perry Corridor, Maryland, pleaded responsible at this time to financial institution fraud, in reference to a fraud scheme during which he embezzled roughly $1 million from an aged shopper’s retirement account.
The responsible plea was introduced by United States Legal professional for the District of Maryland Erek L. Barron; Performing Particular Agent in Cost R. Joseph Rothrock of the Federal Bureau of Investigation, Baltimore Discipline Workplace; and Southeast Area Particular Agent in Cost Edwin Bonano of the Federal Housing Finance Company, Workplace of Inspector Common.
“This defendant perpetrated a heartless scheme that preyed on a weak aged sufferer, stealing greater than 1,000,000 {dollars},” mentioned United States Legal professional Erek L. Barron. “We’ll proceed to work with our legislation enforcement companions to convey to justice those that interact in these despicable schemes concentrating on aged victims. I encourage anybody who believes they could be a sufferer of monetary fraud to contact the Elder Fraud Hotline at 833-FRAUD-11 (833-372-8311).”
In keeping with his plea settlement, Blizzard held a number of licenses that allowed him to function as a registered dealer and a registered funding adviser per the Monetary Trade Regulatory Authority (“FINRA”). From 2003 to 2014, Blizzard was employed by a financial institution securities firm (Financial institution 1) and from 2014 to 2017 he was employed by a financial institution funding providers firm (Financial institution 2), each in Maryland.
As detailed within the assertion of information, sufferer R.M. was a resident of Maryland and had attended college by means of the ninth grade. R.M. was 75 years previous in January 2020. Starting in 1963, R.M. went to work for a Baltimore primarily based industrial air-conditioning firm, the place he loved a profitable profession putting in industrial grade air con items across the nation. R.M.’s employer provided him supervisory positions on the firm, however R.M. declined as a result of he was not capable of learn or write. R.M. was capable of proceed as an air con technician by memorizing information and figures and conceptualizing issues visually. R.M. routinely labored roughly 15 to 30 hours of extra time per week throughout his profession to make extra cash. In 2003, after roughly 40 years of service with the air con firm, R.M. took a buyout and retired. Six months later, R.M. determined to take a position his retirement funds to offer an inheritance for his grandchildren. R.M. sought funding recommendation from Financial institution 1, the place he had his depository accounts.
Blizzard started working at Financial institution 1 shortly after R.M. started investing there and have become R.M.’s monetary adviser. Blizzard admitted that in about 2005, he instructed R.M. that he “went out on his personal” that means that Blizzard started working as an impartial monetary advisor and requested R.M. if R.M. wished to go away Financial institution 1 and use Blizzard as a full-time monetary advisor. Blizzard instructed R.M. that it might be some time earlier than he had his personal workplace, however he would proceed to work out of the Financial institution 1 department in Catonsville, Maryland. Nonetheless, Blizzard by no means went to work as an impartial monetary advisor.
In keeping with the plea settlement, roughly as soon as a month, R.M. would drive from his new house in Chester, Maryland on the Japanese Shore to fulfill with Blizzard at Financial institution 1 in Catonsville, roughly one hour away; nonetheless, R.M. and Blizzard would meet in Blizzard’s automobile, not the workplace. R.M. continued to fulfill with Blizzard on this manner over a number of years. These conferences lasted 30 to 45 minutes and R.M. was by no means instructed why they had been assembly in Blizzard’s automobile.
Blizzard admitted that after he grew to become R.M.’s monetary advisor, he started asking R.M. for signed clean checks. R.M. recalled giving Blizzard 15-20 signed clean checks. Blizzard crammed within the remaining data to incorporate the payee, the quantity, the date, and detailed memo part, however R.M. didn’t know what the checks had been for. When R.M. acquired the cancelled checks within the mail, he knew Blizzard had written them out as a result of R.M. acknowledged Blizzard’s handwriting. Blizzard used these checks for private functions, and never for any advantage of R.M. On roughly 12 completely different situations, R.M. went to his native financial institution to withdraw money and was instructed there was not sufficient cash within the account. R.M. would then name Blizzard to let him know in regards to the deficiency. Blizzard then instructed R.M. to attend a day or two and there could be funds within the account to withdraw. R.M. didn’t ask Blizzard why there have been no funds within the account or how these funds had been replenished.
Throughout his years of funding with Blizzard, R.M. believed that his retirement funds had been protected, that means they’d not lose worth – a undeniable fact that Blizzard reiterated to R.M. many instances. R.M. additionally believed that Blizzard was dealing with fee of R.M.’s mortgage.
As detailed within the plea, in August 2019, R.M. realized there was an issue. R.M. was making ready to go on a household trip and tried to withdraw $1,000 to $1,500 in money from the native Financial institution 1 department and was instructed there weren’t enough funds within the account. R.M. tried to contact Blizzard on his mobile phone for every week with no response. R.M. then went to Blizzard’s Perry Corridor, Maryland residence to speak to Blizzard in individual, knocking on the back and front doorways of Blizzard’s residence. Nobody got here to the door, however R.M. acquired a voicemail from Blizzard, whereas he was nonetheless at Blizzard’s house. Within the voicemail, Blizzard acknowledged that the neighbors had referred to as him and had been complaining in regards to the banging on the door. Blizzard additional defined that every one of R.M.’s cash was gone, and that Blizzard had tried suicide at his guardian’s Myrtle Seashore, South Carolina house, and was being hospitalized.
On September 19, 2019, Blizzard despatched an e mail to R.M.’s son in response to a message R.M.’s son had despatched by way of social media to Blizzard’s spouse inquiring about what occurred to R.M.’s cash. Blizzard instructed R.M.’s son that he had made some dangerous investments and felt horrible about failing R.M. and that’s the reason Blizzard tried to finish his life. As defined within the plea, Blizzard admitted that, in reality, he was by no means hospitalized and didn’t try suicide in South Carolina and that the explanation R.M.’s account misplaced worth was virtually completely as a result of Blizzard withdrew R.M.’s funds, and deposited these funds into his personal checking account, to make use of for his personal functions.
A evaluation of R.M.’s depository and funding accounts confirmed that between January 2013 and August 2019 there have been a complete of 242 distributions totaling roughly $1.4 million from R.M.’s retirement accounts. Of these, 129 distributions totaling $1.2 million had been particularly requested from R.M.’s retirement accounts as an alternative of being common systematic annuity funds. After taxes and charges had been deducted from these requested funds, roughly $1 million was deposited into R.M.’s Financial institution 1 account. This evaluation additionally revealed that from April 2016 to April 2019 Blizzard deposited roughly 112 checks drawn on R.M.’s account into varied financial institution accounts at Financial institution 1 and elsewhere that had been held by Blizzard collectively along with his spouse or individually. These checks totaled roughly $848,000 and had been written to Blizzard or Blizzard’s spouse. A evaluation of those checks confirmed that the majority had feedback written on the memo part indicating varied functions comparable to fee of property taxes, development, boat funds, and down funds for a brand new home.
As well as, on not less than three events Blizzard stole R.M.’s Social Safety revenue, which was straight deposited into R.M.’s checking account. On every event, as soon as the fee was deposited into R.M.’s account, a test within the quantity of $1,200 or extra, signed by R.M. and made payable to Eddy Blizzard, was deposited in Blizzard’s private account. Additionally, within the fall of 2019, R.M.’s house was put into foreclosures as a result of Blizzard did not make the mortgage funds on R.M.’s house as he had promised. R.M. died on March 20, 2020.
Blizzard faces a most sentence of 30 years in federal jail for financial institution fraud. As outlined within the plea settlement, Blizzard may also be required to pay restitution within the full quantity of the victims’ losses, which is not less than $1,030,000 and to forfeit $848,000 within the type of a cash judgment. U.S. District Choose Stephanie A. Gallagher scheduled sentencing for Blizzard on April 30, 2024, at 11:30 a.m.
Reporting from shoppers about fraud and fraud makes an attempt is essential to legislation enforcements efforts to analyze and prosecute schemes concentrating on older adults. In case you or somebody you already know is age 60 or older and has been a sufferer of monetary fraud, assist is offered by means of the Nationwide Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Division of Justice Hotline, managed by the Workplace for Victims of Crime, is staffed by skilled professionals who present customized assist to callers by assessing the wants of the sufferer and figuring out subsequent steps, together with figuring out applicable reporting businesses, offering data to callers to help them in reporting or connecting them with businesses, and offering assets and referrals on a case-by-case foundation. The hotline is staffed from 10:00 a.m. to six:00 p.m. Monday by means of Friday. English, Spanish, and different languages can be found. Extra details about the Division’s elder justice efforts may be discovered on the Division’s Elder Justice web site, www.elderjustice.gov. Victims are inspired to file a criticism on-line with the FBI’s Web Crime Grievance Heart at this web site or by calling 1-800-225-5324.
United States Legal professional Erek L. Barron recommended the FBI and the FHFA OIG for his or her work within the investigation. Mr. Barron thanked Assistant U.S. Attorneys Evelyn Lombardo Cusson and Aaron S.J. Zelinsky, who’re prosecuting this case.
For extra data on the Maryland U.S. Legal professional’s Workplace, its priorities, and assets accessible to assist seniors, please go to www.justice.gov/usao-md and
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