PHOENIX — A past Morgan Stanley financial advisor who pleaded guilty to defrauding an elderly client out of nearly $900,000 in July 2024 was sentenced to 22 months in prison, the United States Attorney’s Office for the District of Arizona announced Friday.
Ronald Diaz, now 41 and of Tucson, pleaded guilty on July 18 to a scam in which he pocketed $867,000 between November 2020 and July 2022 while falsely guaranteeing a 10% return to a client, according to Arizona prosecutors.
Details on financial advisor’s wire fraud
Diaz had told the unidentified client to make a wire transfer of $970,000 to his family members, in effort “to disguise his scheme,” according to a press release. With the funds, Diaz used them primarily for personal gain: gambling at casinos, making a down payment on a 2021 Range Rover, paying off credit card debt, remodeling his family’s pool and making mortgage payments.
Diaz’s plea deal was carried out in his sentencing by U.S. District Judge Scott H. Rash, as he will be required to repay the victim’s loss in full, $867,510.37 to be exact. This $500 and change was added onto the reparations because investigation revealed that Diaz made “interest” payments while convincing his client to wire the money.
The Tucson man was originally scheduled for a Sept. 27 sentencing last year. Charges of wire fraud against Diaz could have resulted in a maximum sentencing of 20 years in prison and a $250,000 fine.
The FBI handled the case’s investigation.
