Former wealth manager sentenced on multiple charges
LEXINGTON, Ky. (WTVQ)- A former wealth manager and UK Basketball staffer, who represented professional athletes, was sentenced Monday.
U.S. District Court Judge Joseph M. Hood, sentenced 45 year-old Leon A. Smith to 51 months, or just over 4 years, in federal prison for stealing close to $1.3 million from clients as well as misusing using their identities.
Smith, now of Batesville, Indiana, was sentenced for wire fraud, identity theft, and money laundering.
He must also forfeit the approximate gross proceeds of his offense, which amounts to $1,298,506.82.
Smith admitted that he used clients’ personal and financial information to transfer their funds into his own bank accounts during two separate guilty plea hearings in November and December 2017.
He also admitted that he then used the information to open unauthorized credit cards and other lines of credit in their names.
Smith said he got away with this by concealing his activities from clients by changing passwords to restrict their access and creating false expense reports that would explain the low account balances caused by his theft.
Smith’s scheme started in September 2011 and continued through January 2015.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Christopher Altemus, Special Agent in Charge, IRS-CI; Amy Hess, Special Agent in Charge, FBI; and Lawrence Weathers, Chief of the Lexington Police Department, jointly announced the sentence.
The investigation was conducted by the IRS-CI, the FBI, and the Lexington Police Department.
The United States was represented by Assistant United States Attorneys Andrew T. Boone and Kathryn M. Anderson.