Chicago resident Caldwell, 58, was charged with wire fraud in a prison info filed final week in U.S. District Courtroom in Chicago, in keeping with the U.S. Legal professional’s Workplace for the Northern District of Illinois.
Prosecutors allege that Caldwell, who labored as a financial institution senior monetary advisor, additionally established an entity known as Canal Productions LLC for the aim of manufacturing films, and that from 2014 to 2023 she solicited numerous financial institution purchasers, together with aged prospects, to spend money on her film initiatives.
Caldwell knew the funds would truly be used for her personal private profit, in keeping with the prison info, which says she persuaded the victims to liquidate different belongings with the intention to fund her purported film investments.
Caldwell defrauded three purchasers out of roughly $1,480,500, prosecutors allege. Wire fraud is punishable by as much as 20 years in federal jail, the Justice Division mentioned, noting the ex-advisor owed fiduciary duties to these purchasers.
Morris Pasqual, appearing U.S. legal professional for the Northern District of Illinois, and Robert W. “Wes” Wheeler Jr., particular agent-in-charge of the FBI’s Chicago Discipline Workplace, introduced the cost. Assistant U.S. Legal professional Corey B. Rubenstein represents the federal government within the case.
Whereas the Justice Division didn’t identify the financial institution the place Caldwell labored on the time, the U.S. Workplace of the Comptroller of the Foreign money, which final 12 months barred Caldwell from working for any federally insured financial institution or credit score union, had recognized her as a former monetary advisor and twin worker of Citibank and Citigroup International Markets.
The Monetary Business Regulatory Authority, which final 12 months barred Caldwell from appearing as a dealer, has reported Citi’s findings from an inner evaluation that Caldwell hadn’t adequately disclosed her outdoors enterprise exercise and was soliciting agency purchasers to spend money on that exercise, a number of of whom subsequently made investments.
With out admitting or denying wrongdoing, Caldwell in November consented to the OCC’s order prohibiting her from working for any federal depository establishment, in keeping with the consent order. The OCC, in laying out its case towards Caldwell, mentioned she had not disclosed to Citi that she was soliciting, or would solicit, Citi purchasers to spend money on her movie enterprise.
The Justice Division’s prison info alleges she hid her actions from “Financial institution A” by falsely certifying within the financial institution’s required annual “outdoors enterprise actions” reviews that she wasn’t soliciting financial institution purchasers for investments in her personal outdoors endeavors. The financial institution required the reviews to make sure the previous advisor’s compliance together with her fiduciary duties and to keep away from any potential conflicts of curiosity, prosecutors mentioned within the info.
One financial institution shopper invested $800,000 towards Caldwell’s enterprise, one other offered $355,000 and a 3rd put in $325,500, in keeping with the Justice Division.
Caldwell was a FINRA-registered dealer with Citi from June 8, 2012, by Nov. 10, 2021, when, in keeping with the OCC, she resigned.
After that, she labored for lower than a 12 months at Wells Fargo Clearing Providers, in keeping with FINRA, which has reported that on Sept. 15, 2022, Wells Fargo disclosed she had been discharged “following an inner evaluation regarding the accuracy of disclosures” she made to the agency and her compliance with its outdoors actions and out of doors funding coverage.
FINRA barred Caldwell from appearing as a dealer for declining to testify in its investigation of her conduct at Citi and Wells Fargo.
As ThinkAdvisor beforehand reported, the Web Film Database lists Helen Grace Caldwell as a producer, director and actress.
Citi has no touch upon the case, a spokesperson mentioned Thursday. Caldwell didn’t instantly reply to a message left by her web site.
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