A former Waukee financial adviser was sentenced to nine years in prison Friday after pleading guilty to defrauding clients of more than $2 million.
William Berg, 52, was indicted in March on charges of money laundering and more than a dozen charges of wire fraud, and briefly appeared on the FBI’s Most Wanted list before he was apprehended the following month in Kansas. He pleaded guilty in June to two charges.
According to court filings, Berg acted as a financial adviser and sold life insurance and other financial products. Starting in 2016, prosecutors say he encouraged at least 17 clients to invest in two shell companies that he secretly owned, using the money to pay for vehicles, travel and jewelry, including a $37,000 custom engagement ring and other pieces of diamond jewelry that he forfeited to the government as part of his plea.
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In advance of Friday’s hearing, prosecutors had urged U.S. District Judge Rebecca Goodgame Ebinger to impose a 12-year sentence.
Among other aggravating factors, they noted in court filings that Berg had fled the state to avoid arrest after tearing up by hand more than 70 pages of documents that, when reconstructed, showed falsified tax records account statements related to his fraud. And they argued that Berg deserved a heightened sentence for targeting vulnerable victims, including elderly widowers with limited education and financial know-how.
“These unusual vulnerabilities — coupled with the trust Berg cultivated with the victims — are precisely why Berg chose these victims to defraud,” Assistant U.S. Attorney Adam Kerndt wrote.
Berg’s attorney, Joe Herrold, wrote in presentencing filings that the majority of his fraud occurred after his parents’ deaths in 2019 and the end of his marriage in 2020, leading Berg to “hit rock bottom.” He described Berg’s conduct as a “Ponzi-like scheme” in which Berg used some money from new victims to repay other victims, and said his client is “deeply ashamed” of his actions.
“There is no dispute in this case that he abused his position of trust to steal monies from financially unsophisticated people that believed him and were depending on him to help make their lives financially secure,” Herrold wrote.
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Herrold did not recommend a particular sentence before Friday’s hearing but asked the judge to consider Berg’s prospects to turn his life around.
“He has the characteristics of someone that will respond well to correctional and rehabilitative treatment, and who can take accountability for his behavior,” Herrold wrote. “He recognizes the seriousness of his offense, deeply regrets his actions, and fully accepts responsibility for his conduct.”
Ebinger agreed with prosecutors that Berg’s conduct amounted to obstruction of justice and targeted vulnerable victims. Nonetheless, she sentenced Berg to 108 months, or 9 years, below the federal sentencing guideline-recommended range of 121 to 151 months. He also must pay more than $1.6 million in restitution.
Herrold referred a message seeking comment to Federal Public Defender Brad Hansen, who did not respond before deadline Friday.
William Morris covers courts for the Des Moines Register. He can be contacted at [email protected] or 715-573-8166.
This article originally appeared on Des Moines Register: Iowa financial adviser sentenced for ‘Ponzi-like’ wire fraud scheme
