PHILADELPHIA — A former investment advisor was sentenced today in U.S. District Court here to five years in federal prison for orchestrating a Ponzi scheme in which he defrauded his clients of more than $7 million.
Lee D. Weiss, 51, was also ordered by U.S. Eduardo C. Robreno to serve three years of probation following his prison term and pay $7.5 million in restitution.
Investigators said he used the money from some clients to pay other clients and to purchase cars and pay for country club membership.
Find out what’s happening in West Chesterwith free, real-time updates from Patch.
Weiss was the principal of Family Endowment Partners, LP, an investment adviser registered with the U.S. Securities and Exchange Commission, which had an office in West Chester, which has since been closed by the SEC.
Jacqueline Maguire, special agent in charge of the FBI’s Philadelphia division, said justice demands that financial fraudsters like Weiss be held accountable for their crimes.
Find out what’s happening in West Chesterwith free, real-time updates from Patch.
“Lee Weiss’ clients expected him to invest their money responsibly and he had a fiduciary duty to do so,” Maguire said in a prepared statement. ” Instead, he misappropriated millions for his and his company’s purposes.”
U.S Attorney Jacqueline Romero said honesty, integrity, and trust all play a critical role in the relationship between a financial advisor and a client.
“When the advisor corrupts that relationship, the damage done…
