A former financial advisor from Potomac Falls pleaded guilty July 20 to federal charges of wire and investment advisor fraud in connection to an alleged scheme to steal upward of $6 million, according to the U.S. Department of Justice.
Authorities said Michael Barry Carter, 47, previously worked for an unnamed financial institution at its Tysons Corner location. From 2007 until last year, Carter allegedly made more than 50 of unauthorized transactions from investment accounts that were under his authority and maintained by five separate victims.
Per the DOJ, he defrauded the five victims of a total of at least $5 million during this period by submitting falsified internal bank authorization forms.
One victim and her adult daughter reportedly discovered Carter's fraud when they applied for a bridge loan from his financial institution and discovered an $800,000 loan had already been obtained in the victim's name.
After being fired from his job last July, Carter admitted to the illicit activity during a call with his former colleagues on Aug. 2, 2019.
He additionally admitted to having embezzled more than $50,000 from an unnamed, nonprofit sports organization in Loudoun County, officials said.
In Carter's many years of fraudulent activity, the DOJ said he ultimately stole approximately $6.149 million, about $1.794 million of which has so far been returned to his victims.
Carter has also reportedly repaid the Loudoun nonprofit for its losses. Per the DOJ, more than $1 million of the funds he repaid was done through transfers from other victim accounts.
The Justice Department says Carter faces a maximum sentence of 20 years in prison for wire fraud and a maximum sentence of five years for investment adviser fraud.
He is scheduled for sentencing Nov. 9.