Crime & Safety

Stock Broker Who Ran Firm in Kirkland Pleads Guilty to Wire Fraud Charges

Bellevue resident Richard A. Finger admits he defrauded at least ten clients of as much as $7 million.

A Bellevue stock broker who operated a brokerage in Kirkland has pleaded guilty to federal charges that he defrauded at least 10 clients of as much as $7 million.

Richard A. Finger, 32, who owned and operated Black Diamond Capital Management and Black Diamond Securities of Kirkland, pleaded guilty to the wire fraud charges in U.S. District Court in Seattle on Monday.

In a plea arrangement, prosecutors agreed to recommend a sentence of 78 months in prison when Finger is sentenced by U.S. District Judge Ricardo S. Martinez on Feb. 17 of next year, according to a press release from the office of the U.S. Attorney for Western Washington.

The amount of restitution Finger must pay will be determined at sentencing.

The federal Security and Exchange Commission filed charges in September alleging that Finger lost millions of dollars for customers in a matter of months through risky, undisclosed options trading and excessive, concealed commissions. The charges claim he opened the firm in February and began managing nearly $5 million in assets, mainly for friends and family members.

According to the criminal complaint, some of the clients invested with Finger while he worked for a Seattle brokerage firm, including one client who placed almost $700,000 with him for investment.

From the fall of 2009 through 2010, Finger allegedly assured the client the investment was growing while in fact it was sustaining serious losses. When he moved to his own firm in Kirkland, Finger showed the client fake statements that showed it was worth $1.2 million when it was actually worth only $5,500, according to the complaint.

He also allegedly took significant commissions from the 10 accounts and used them for his own benefit. Another client invested $1 million and was shown statements by email, until August of this year, when Finger admitted it had lost more than $800,000.

The complaint also alleged Finger transferred thousands to his personal checking account to pay for credit card bills, food and entertainment and business expenses, claiming the money as commissions.


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