An ex-Edward Jones broker who was indicted in 2021 for allegedly defrauding clients out of about $800,000 has been sentenced to two years in prison, according to court documents.
On Sept. 27, a final judgment was entered against Ronald T. Molo in U.S. District Court for the Northern District of Illinois. He was also ordered to pay $815,104 in disgorgement and prejudgment interest.
Molo allegedly defrauded clients out of nearly $800,000 and used some of the money to pay for "at least two vehicles," credit card balances, lottery tickets and home mortgages for himself and his in-laws, according to the Justice Department indictment filed Nov. 15, 2021.
Molo pleaded guilty in 2021 to one count of fraud as part of a plea deal and was permanently blocked from the securities business in 2022 by the Securities and Exchange Commission
He was initially charged with six counts of wire fraud, the indictment noted. "Each count of wire fraud is punishable by up to 20 years in federal prison," the Justice Department said at the time.
Molo joined Edward Jones as a broker in May 2001, according to his report on the Financial Industry Regulatory Authority's BrokerCheck website.
Edward Jones terminated Molo on June 15, 2021, after allegations that "clients transferred funds to an external account believed to be related to the registered representative," a disclosure on his BrokerCheck report said. "The transfers were subsequent to the registered representative soliciting a purported investment."
Edward Jones' Take
"We have fully supported and cooperated with the law enforcement investigation that led to the indictment of Ron Molo and, ultimately, his sentencing this week," a company spokesperson told ThinkAdvisor on Thursday.
"Upon identifying his misconduct, Edward Jones promptly terminated his employment and notified the proper authorities. The few Edward Jones clients impacted by Molo's misconduct were made whole by our firm and remain clients today," she said.
