Attorney General Martha Coakley's Office Announce Guilty Plea and Sentence of a Former Financial Advisor Charged with Securities Fraud and Larceny
Gruber has twice previously been charged with and convicted of similar charges in connection with investment fraud. The present case arose in July 2006 after the Attorney General's Office received a copy of a complaint against Gruber filed by the Secretary of the Commonwealth's Securities Division. The complaint stated that from mid-October 2005 through late March 2006, Gruber misrepresented himself to the victim as a certified financial planner and stockbroker. Gruber advised the victim to invest funds in certain bonds and stocks, and in a real estate loan. He deposited the money into accounts in the name of Gruber Financial Services, Inc., a defunct corporation. Gruber did not invest the victim's funds, but instead spent the funds for his personal use. The victim and her lawyer contacted the Secretary of the Commonwealth's Securities Division after Gruber failed to comply with the victim's demand for an accounting of her investments and the return of her money.
A Plymouth County Grand Jury returned indictments against Gruber on January 4, 2008. On March 12, 2008, Gruber was arrested in Hull by Massachusetts State Police assigned to the Attorney General's Office. He was arraigned the same day in Brockton Superior Court where he pled not guilty and was ordered held on $500,000 cash bail. Yesterday, a jury for Gruber's trial was seated. Today, before the start of his trial, Gruber pled guilty to all charges and was sentenced.
The case was prosecuted by Assistant Attorneys General Marc Jones and Margaret Parks, both of Attorney General Coakley's Corruption and Fraud Division. It was investigated by Paul Stewart, chief of the Attorney General's Financial Investigations Division, and Mark Pulli, also of the Financial Investigations Division.