A former financial advisor in Iowa who appeared on the Federal Bureau of Investigation's "most wanted" list has pleaded guilty to wire fraud and money laundering charges.
William Jack Berg, 51, who was arrested in April, pleaded guilty on June 10 in connection to defrauding over a dozen people by encouraging them to transfer their funds to him for investment, according to prosecutors.
The targeted individuals provided Berg with over $1.5 million that he used instead for his own personal expenses, including vehicles, jewelry, rent, travel, groceries, gas, clothing and dining out, the U.S. attorney's office for Iowa's southern district said.
As part of his plea, Berg, who lived in Waukee, Iowa, agreed to forfeit jewelry purchased with fraudulently acquired money, including an engagement ring acquired with a check from his bank account for $37,343, prosecutors said.
Berg also used the investors' money to make payments to other individuals as purported "returns" or "dividends" on previously received money even though he had already spent those individuals' assets.
Berg admitted to making false and fraudulent representations to his victims for the purpose of enriching himself at the expense of the victims, prosecutors said.
He is scheduled to be sentenced on Oct. 11 and potentially faces up to 20 years in prison for wire fraud and up to 10 years in prison for money laundering. Berg also will be ordered to pay restitution to all victims of his fraud scheme in an amount to be determined by the sentencing U.S. district court judge.
