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For Immediate Release

Media Contact:
Shanetta J. Paskel, 410-576-7939
spaskel@oag.state.md.us

Attorney General Gansler Reaches Settlement and Gets Over Two Million Dollars Returned to Investors
Kevin Forrester Sentenced to 15 Years in Prison, with 5 years Suspended


Baltimore, MD (August 29, 2008) - Maryland Attorney General Douglas F. Gansler announced today his Office’s successful resolution of civil and criminal cases against Kevin Forrester d/b/a Forrester Financial Group. Forrester was a registered broker-dealer agent and investment adviser representative. Forrester entered into a consent order in the civil case that concluded that Forrester violated the Maryland securities laws by selling unregistered securities and engaging in fraud in the offer and sale of securities and investment advice. On May 8, 2008, Forrester pled guilty in the criminal case and was convicted of fraudulent securities practice and felony theft, having stolen more than $2.2 million from 21 investors.

“The Securities Division was able to put an immediate stop to Forrester’s fraudulent activities within days of its March 2007 examination of his broker-dealer and investment advisory business, and the Criminal Division acted swiftly to file the appropriate criminal charges against Forrester,” said Attorney General Gansler.

In resolving the civil case, Forrester was ordered to sell personal assets totaling $157,048 and pay the proceeds as restitution to investors. The Office was able to secure an additional $1,851,347.22 from Forrester’s broker-dealers in restitution to investors scammed by Forrester.

At the sentencing hearing on August 28, 2008, Forrester was sentenced to the maximum sentence of fifteen (15) years for felony theft, with five (5) years suspended. Baltimore County Circuit Court Judge Robert E. Cahill, Jr., who presided over the sentencing, also sentenced Forrester to a three (3) year concurrent sentence for the securities fraud count. After his incarceration, Forrester will serve five years of supervised probation. During this time, he is to pay more than $2.2 million in restitution to the investors, to the extent that they have not been reimbursed by the broker-dealers that had employed Forrester or by distributions of assets recovered by the Securities Division, and to the broker-dealers for any amounts that they have reimbursed investors for monies stolen by Forrester.

According to the investigative audit, Forrester stole over $2.2 million from investors during an investment scheme that lasted from January 6, 2003, to March 8, 2007. Forrester told the investors that he would place their money in a high interest, short term investment fund. However, the fund was not an actual legitimate security and Forrester did not put the investors’ money in any type of legitimate investment. Forrester used the stolen money to finance his business, to purchase a $1.2 million home, to purchase expensive furnishings for the new home, and to pay for other luxuries.

Attorney General Gansler advises investors to call the Securities Division at 410-576-6360 before they invest to find out whether their investment adviser, broker and securities are registered. “Even when an investment program looks reasonable, and friends and family trust the promoter, it's better to take a few minutes to verify the status of the promoters,” said Attorney General Gansler. In making today’s announcement, Attorney General Gansler thanked Assistant Attorney Generals Kate O’Donnell, Katharine Weiskittel, and Kevin Blake, and the investigators Jim Williams and Frank Barlow.

   

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