Beverly, Mass. Man Pleads Guilty In Connection With Stealing More Than $526,000 From 10 Clients

August 31, 2007 -- SALEM – Today, a Beverly man pled guilty in connection with stealing $526,500 from 10 investors who had hired him to invest their savings in stocks. Michael Abbot, age 52, entered a change of plea from not guilty to guilty on charges of fraudulent sale or offer of securities (10 counts), being an unregistered broker-dealer (10 counts), larceny by false pretense (8 counts) larceny by false pretense for victims age 60 or over (2 counts) and failure to file tax returns (3 counts). Abbot will be sentenced on October 19, 2007, in Essex Superior Court in Salem.

Abbot worked as a financial investor who represented to clients that he was investing their money in stocks. Abbot told investors their money was going into well-performing stocks, such as Google, Ask Jeeves, Western Wireless, Lucent Technologies, Sirius Satellite, and Motorola, Inc. Abbot informed victims that they were doubling their money and often-times making hundreds of thousands of dollars on their investments with him.

The investigation found that Abbot used the victim’s funds for his own purposes including rent, expensive stationery, and taxi cab fares. Abbot also used the money to pay commissions to investors who urged friends and relatives to invest their savings with him.

In total, Abbot stole $526,500 from 10 clients, which included retirees and two victims in their 70s.

On May 20, 2005, an Essex County Grand Jury returned the indictments against Abbot. Today, Abbot pled guilty to those charges before Essex Superior Court Judge Howard J. Whitehead. He will be sentenced on October 19, 2007. Assistant Attorneys General Ina Howard-Hogan and Marc Jones are assigned to this case.

Source: Massachusetts Attorney General

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