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Former UBS Adviser Sentenced to More Than 5 Years in Prison for $5.4m Fraud

A former Walnut Creek, California financial adviser for the United Bank of Switzerland Financial Services, Inc. received a 65-month prison sentence last Thursday for stealing $5.4 million from his clients, according to a Sept. 15 FBI press release.

On June 9, Steven Kobayashi, of Livermore, California, pled guilty to one count of wire fraud and one count of money laundering in connection to the fraud. In his plea agreement, Kobayashi admitted to fraudulently transferring approximately $5.4 million in funds from his client's UBS accounts to his personal bank accounts over a period of approximately three years. Some of the transfers were made through forged authorization documents.

Last March, the SEC also filed charges against Kobayashi alleging that the former adviser misappropriated millions in investor funds through a pooled investment fund that he created. According to the SEC, the fund was supposed to be used to invest in life insurance polices, but Kobayashi allegedly stole much of the money and used it to "fund his extravagant lifestyle." Kobayashi agreed to settle the SEC's charges without admitting or denying the allegations.

Restitution will be ordered in a court hearing on Oct. 19. For more information, read the FBI's full release here.

The information contained in The Firm’s posts on its blog, fraud alerts, investigations or elsewhere on the site is based upon information obtained from other sources including, but not limited to, news outlets and federal, state, and regulatory agency filings. All suspects and subjects of postings herein are presumed innocent until proven guilty in a court of law or administrative action and any and all crimes are alleged until a court or regulatory agency finds otherwise .

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