Investment Adviser, Patricia S. Miller, Charged with Stealing Client Funds in Massive Ponzi Scheme

A Pennsylvania woman affiliated with a Massachusetts-based broker dealer was arrested on charges that she orchestrated a massive Ponzi scheme.

Patricia S. Miller, 67, was charged in a complaint with wire fraud and arrested in Pennsylvania today.

The complaint alleges that Miller used her position as a trusted financial adviser, as well as her association with a Massachusetts-based broker dealer, to obtain money from clients for purported investments that Miller never made on their behalf. Specifically, Miller promised high returns if clients put their money into “investment clubs” called, among other things, “KS Investments” and “Buckharbor.” Miller represented, among other things, that funds put into her investment clubs would be placed in fixed-income notes and other investments. Instead of investing money as promised, Miller misappropriated client funds for her own personal use.

If convicted, Miller faces a maximum sentence under the statute of 20 years in prison, three years of supervised release, and a $250,000 fine.