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For Immediate Release

Media Contact:
Raquel Guillory, 410-576-6357
rguillory@oag.state.md.us

Former Securities Broker Pleads Guilty in Baltimore County to Securities Fraud and Theft of Over $2 Million

BALTIMORE, MD (May 8, 2008) - Maryland Attorney General Douglas F. Gansler announced today that Kevin Thomas Forrester, 32, former operator of Forrester Financial Group in Phoenix, pled guilty before the Honorable Robert E. Cahill, Jr. in the Circuit Court for Baltimore County to felony theft and fraudulent securities practices.

The State’s investigation revealed that from January, 2003 to March, 2007, while acting as a securities broker-dealer agent, Forrester took $2,219,975 from 21 investors with the express representation that he would place their money in a high interest, short term investment opportunity that he referred to as the “Private Funding Group” (PFG). In fact, the PFG investment fund was not a bona fide investment and it was discovered that Forrester used all the investors’ money for his own business expenses and personal expenditures. These purchases included a new home valued at $1.2 million, additions to the new home, interior decoration and furniture for the new home, new vehicles, membership to a local country club, and numerous vacations. One of his victims was his own grandmother.

The charge of felony theft carries a maximum penalty of 15 years in jail, a $25,000 fine, or both. The charge of fraudulent securities practices, a misdemeanor, carries a maximum penalty of three years in jail, a $50,000 fine, or both. Sentencing is scheduled for August 18.

The case was investigated and prosecuted by the Criminal Division of the Attorney General’s Office, after referral from the Office’s Securities Division. The Maryland State Police assisted in the investigation. The Maryland Division of Securities revoked Forrester’s registration as a broker-dealer agent and investment adviser in March, 2007. In making today’s announcement, Attorney General Gansler thanked Assistant Attorney General Kate O’Donnell for her work on the case.

   

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