Union Co. Investment Advisor Steals Over $500K From Clients: Prosecutor

UNION COUNTY, NJ — A former investment advisor from Union County was arrested Friday after stealing over $500,000 from clients to fund his gambling and personal expenses, U.S. Attorney Philip R. Sellinger announced Monday.

Prosecutors said Mario E. Rivero Jr., 38, of Elizabeth stole at least $529K from four clients between April 2018 and Nov. 2020 while working for a large brokerage firm. Rivero was arrested at his home and is scheduled to appear in court Monday afternoon in Newark federal court.

He was charged with two counts of wire fraud, one count of investment advisor fraud and one count of securities fraud.

According to documents and statements made in court, Rivero, who had been entrusted to manage client funds, perpetrated a scheme to defraud multiple clients. He obtained his clients' money under the false pretense that he would invest the funds, but rather diverted the funds to enrich himself and others.

Each of the wire fraud counts carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest, according to the U.S. Attorney's Office.

The investment adviser fraud count carries a maximum potential penalty of five years in prison and a $10,000 fine, or twice the gross gain or loss from the offense. Lastly, the securities fraud count can have a maximum penalty of 20 years in prison and a $5 million fine.