A former financial advisor entrusted with advising clients on investments has been sentenced to 37 months in prison for defrauding his client out of his retirement savings and using the funds for his own benefit
Jesse Holovacko, 39, of Sayreville, was previously convicted on six counts of wire fraud and one count of investment advisor fraud following a five-day trial before U.S. District Judge Michael A. Shipp, who imposed the sentence on Oct. 25 in Trenton federal court.
According to documents filed in this case and the evidence at trial, Holovacko was an investment advisor at a financial institution in New Jersey. In 2012, he went to the factory where the victim worked, met with the victim and some of his co-workers, and signed the victim on as a client, transferring the victim’s pension savings into an Individual Retirement Account (IRA). The victim entrusted Holovacko with managing the victim’s retirement savings, according to information provided by Acting U.S. Attorney William E. Fitzpatrick.
From December 2013 to August 2014, Holovacko falsely told the victim that he would use retirement account funds to purchase bonds for him and advised the victim to transfer the retirement money to the victim’s bank account and then provide cashier’s checks made out directly to the financial advisor, telling the victim it would make it easier to purchase the bonds, according to the statement. Based on these false representations, Holovacko obtained 18 cashier’s checks totaling approximately $255,000.
Holovacko deposited all of the cashier’s checks into his own personal bank account and spent it for his car loan and mortgage payments, dining out, concerts and clubs, baseball game tickets, as well as taking out approximately $150,000 in cash, according to the statement. In order to continue deceiving the victim, Holovacko promised the victim documentation of the purported investments in bonds.
In addition to the prison term, Shipp sentenced Holovacko to three years of supervised release. Forfeiture and restitution will be determined at a hearing scheduled for Nov. 15.