Farmingdale investment counselor charged with mail, wire, securities fraud

An investment advisor and tax preparer from Farmingdale faces wire, securities and mail fraud charges, for allegedly skimming more than $1,800,000 from clients in a span of nearly a decade.

Scott Newsholme, 42, was charged today and appeared this afternoon in a federal court in Trenton, according to the office of Acting New Jersey U.S. Attorney William E. Fitzpatrick, which added that the U.S. Securities and Exchange Commission filed a civil complaint as well.

Authorities are trying to determine if they've uncovered all victims. They urge anyone who suspects being caught in the alleged scheme to reach the FBI in Newark, 973-792-3000.

Investigators contend that he spent the money on cars, furniture, casino debts, transfers to his personal accounts and ATM withdrawls, while clients thought that their checks were being invested for them..

Conviction for mail or wire fraud carries a potential prison sentence of up to 30 years and a fine of $1,000,000. Conviction for securities fraud would leave Newsholme vulnerable to up to 20 years in prison, and a $5,000,000 fine.

According to details released by Fitzpatrick's office, Newsholme owned and ran at least three firms for tax prep and financial consultation since 2002.

From 2007 through 2016, investigators alleged, Newsholme sought investment money from a number of clients, suggesting securities including bond investments in a New Jersey country club, a video game manufacturer, and film production, in addition to more traditional avenues such as insurance, annuities, mutual funds, college accounts, and money market investments.

Newsholme allegedly instructed clients to write checks to him, or one of his companies, then used the money for personal expenses, and diverted new investment money to pay clients who sought to withdraw their portfolios.

Investigators claim that Newsholme fabricated account statements, security instruments, and related documents to portray investments on his clients' behalf.

Assistant U.S. Attorney J. Brendan Day is conducting the governments' case. Newsholme is represented by attorney Gregory E. Tomczak of Scottsdale, Arizona and several offices in New Jersey.

Charges are accusations. Defendants are presumed innocent unless, and until, found guilty in a court of law.