Crime & Safety

Former South Jersey Financial Advisor Pleads Guilty of $900,000 in Fraud

John Montague, 59, of Mantua, admitted to defrauding clients by selling investments he wasn't authorized to sell.

A former West Deptford financial advisor pleaded guilty to defrauding his clients of more than $900,000 by diverting their investment checks for his personal use, U.S. Attorney Paul J. Fishman announced Monday afternoon.

John Montague, 59, of Mantua, pleaded guilty today to an information charging him with one count of wire fraud.

Montague was licensed to sell mutual funds, variable annuities, and insurance premiums, but not corporate or municipal securities, direct participation programs or options, according to documents filed in the case and statements made in court.

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Montague admitted he sold investment vehicles he was not authorized to sell to his clients, describing them as "guaranteed investments," and promising a return of six percent. 

He instructed his clients to make their checks payable to him, and then deposited checks into his personal bank accounts. He issued periodic "dividend" checks to his clients.

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He faces up to 20 years in prison and a $250,000 fine. His sentencing is scheduled for Oct. 28.



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