Recovering Losses caused by Investment Misconduct

Financial Planner Elliot Kravitz Pleads Guilty to Ohio Investment Scam

Elliot Kravitz, owner of EMC Financial Services Inc., pled guilty on Tuesday to defrauding nine customers out of more than $2 million in an investment scheme tied to his role as an independent client investment representative with LPL Financial Corp.

According to various news sources, Kravitz's plea included details on a recommendation he made to a client in July of 2007. Kravitz confessed to advising the client to withdraw money from the "volatile" stock market and to invest the money in a real estate investment trust (REIT) instead. The client did as Kravitz advised, but Kravitz never followed through with the investment.

Instead, he diverted the funds into an account under his control and withdrew money from the account for his personal purposes no fewer than 12 times. He also admitted to stealing over a million dollars from eight other clients.

As is often the case in these one-man investment schemes, Kravitz covered up the fraud by issuing doctored year-end account statements that reflected the investments he said he had made. He could face up to 20 years in prison for the investment scheme and be ordered to pay more than $2 million in restitution. His sentencing date has been set for Aug. 23.

EMC Financial Services Inc. is an investment, financial planning, and tax preparation business located in Mason, Ohio.

About our law firm:

The Ohio-based law firm of David P. Meyer & Associates represents individuals in Ohio and throughout the country who have been harmed by investment fraud. All of our cases are handled on a contingency fee basis and we never request a retainer of any kind.

Contact us toll-free at 1.866.429.2360 for more information or complete the online form on the top of this page and we will respond promptly.