Stockbroker Sentenced for Stealing from Union Investments

A federal judge in Albany, N.Y. has sentenced a stockbroker on April 12 for stealing more than $400,000 from a union employee benefit fund.  U.S. Senior District Judge Thomas McAvoy ordered Anthony DiPace, 47, to serve a prison term concurrent with his 2 ½ year sentence received in January 2004 on a separate conviction for mail fraud in Hawaii. 

 

DiPace became investment manager for LIUNA’s Local 190 in September 1988.  Between August 1993 and April 1996, prosecutors charged, he made at least 40 corporate bond trades involving the assets of the local’s benefits plan.  DiPace had served as investment manager and broker, despite the apparent conflict of interest.  He generated a commission for himself on each trade, in all charging the union $420,482 in unauthorized commissions. 

 

In addition to his sentence, DiPace must provide restitution to the benefits plan of

N.Y. Stockbroker Convicted of Pension Theft

Anthony DiPace was found guilty of stealing $314,000 from a union benefit fund on Sept. 17.  His sentencing has been set for Jan. 15.  In Albany, DiPace was convicted of 11-counts incl. embezzlement, fraud and the unlawful collection of commissions between 1993 and 1996 when he was manager of the health and welfare plan of Laborers Intl. Union of North America Local 190.

 

DiPace stole $314,000 from the union in a series of financial trades through a private brokerage involving excessive commissions. Prosecutors said he violated federal rules that prohibit investment managers from also acting as brokers.  An expert witness testified that the 2.09 percent average commissions DiPace charged the union was 16 times higher than the national average.

 

DiPace is serving a 30-month federal sentence for his conviction in Hawaii in 2000 for mail fraud involving another union. He was accused on misrepresenting and

Ex-Investment Mgr. Accused of Stealing over $300K in Pensions in NY

An union investment manager accused of stealing $314,000 from a laborers union pension fund — by concealing commissions he made on stock and bond trades — will now face a federal jury four years after his indictment.  Anthony DiPace’s embezzlement and wire-fraud trial begins Sept. 14 in Albany before U.S. Dist. Judge Thomas McAvoy (N.D., NY, Reagan).  The trial follows two failed requests to dismiss the charges in both U.S. Dist. Court and the 2nd Circ. Ct. of Appeals in Manhattan.

 

DiPace managed the health and welfare plan for the Laborers Intl. Union of N. America Local 190 from 1988 to 1996.  DiPace allegedly executed a series of trades through his private brokerage practice, Direction Planning on New Karner Road.  He is accused of collecting commissions on the trades without the fund’s trustees’ knowledge, violating federal pension rules that bar investment managers from acting as

New York Union Fund Manager Indicted for $314,000 Theft

Anthony DiPace, a union investment manager, was indicted Dec. 18 on embezzlement and wire fraud charges for allegedly stealing $314,000 from a union’s pension fund by concealing commissions he made on dozens of stock and bond trades. From 1988 to 1996, DiPace managed the health and welfare plan for the Laborers Int’l Union of N. Am. Local 190 in Glenmont, N.Y.

While managing the fund, DiPace allegedly executed a series of trades through his private brokerage practice, Direction Planning. DiPace allegedly collected commissions on the trades without the fund’s trustees’ knowledge, violating federal rules that bar investment managers from acting as brokers in order to avoid potential conflicts of interest. The trustees paid DiPace to manage the fund based on a formula they had established.

DiPace allegedly executed the trades as a registered representative of Linsco Private Ledger, a brokerage firm, even though the company does not allow brokers to …