The sentence was handed down by Senior U.S. District Judge Herman J. Weber.
Kravitz pleaded guilty May 17, 2011, to one count of wire fraud. Kravitz sold securities as an independent client investment representative with LPL Financial Corp., formerly Waterstone Financial Corp.
In July 2007, Kravitz advised one of his clients to pull money out of the stock market, telling the client the market was too volatile, and to instead put his money in a real estate investment trust, Stewart said.
Kravitz then put the money into an account he controlled, Stewart said. Kravitz made 12 additional withdrawals totaling $713,765 from the client’s account by changing the dates on the original distribution form and faxing the requests to the company holding the account.
Kravitz sent the client a year-end account portfolio statement listing the fake real estate investment. Kravitz similarly diverted approximately $1,127,603 from eight other clients for his personal use, Stewart said. To date, LPL Financial has restored all but one of the victims.
“His criminal conduct was knowing and manipulative, particularly because his victims were long-time customers who completely trusted him with their finances,” Assistant U.S. Attorney Jennifer Barry wrote in a sentencing memorandum filed with the court. “Kravitz took advantage of these relationships and abused a position of trust.”
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