Protecting Your Investments: The Case of a Minnesota Financial Advisor’s Alleged Fraud
December 5th, 2024 Update: Kristi Berge has been sentenced to 30 months in federal prison and ordered to pay restitution in the amount of $2,104,395, in her investment fraud scheme where millions in stolen client funds were misappropriated, announced earlier this month by United States Attorney Andrew M. Luger.
Kristi Margaret Berge, a former financial advisor from Edina, Minnesota, faces charges of misusing client funds for personal gain, a serious breach of trust within the financial advisory sector.
We Have Recovered Over
$350 Million for Our Clients Nationwide.
Understanding the Allegations Against Kristi Berge
Kristi Berge, 47, previously associated with Keep Safe Investments (KSI Financial), and co-owner of J&K Connect, a real estate firm, is accused of diverting approximately $1.6 million from her clients’ investment accounts. The U.S. Attorney’s Office for the District of Minnesota alleges that from June 2020 through February 2023, Berge misrepresented her intentions by claiming to invest the funds in secure vehicles like 401(k)s and individual retirement accounts. Instead, these funds were allegedly funneled into her controlled bank accounts to purchase properties in Edina for her real estate business.
The charges detail unauthorized withdrawals ranging from $5,000 to $220,000, labeled as “management” or “administrative” fees, and the fabrication of records to hide these transactions. Berge faces one count of wire fraud and is expected in court on March 7. Additionally, the prosecution seeks the forfeiture of six properties in Edina, collectively valued at over $1.7 million, which include three condominiums and three homes.
Background and Industry Impact
Kristi Berge’s career in the securities industry spans a decade, with registrations at two firms. Her journey began in September 2012 with PKS Advisory Services in Bethlehem, Pennsylvania, and later with KSI Financial in Edina, Minnesota, from July 11, 2013, to December 31, 2023. Currently, Berge is not registered in the securities industry, as per the SEC’s website.
The case of Kristi Berge serves as a stark reminder of the importance of vigilance and due diligence in the investment world. At Meyer Wilson, we are committed to upholding the highest standards of integrity and trust, providing a strong defense for investors against fraudulent activities. If you’ve been affected by investment fraud, reach out to us.
By: Courtney Werning, Esq.
Recovering Losses Caused by Investment Misconduct.
