ATLANTA (AP) - A former Atlanta stockbroker and investment adviser is accused of diverting about $3 million for personal use, including $1 million from a 90-year-old woman with Alzheimer's disease.
Frederick J. Barton was arraigned Monday on charges of wire fraud, mail fraud, and securities fraud. A federal grand jury indicted the 48-year-old Barton Dec. 2.
The indictment alleges that besides diverting funds from clients, he also committed securities fraud by selling shares in his new company, Twinspan, based on false pretenses.
Authorities say one client was the elderly woman identified only as RF, whose investment and bank accounts fell from about $1.3 million in 1999 to less than $100 in 2004.
Barton also faces a civil suit by the Securities and Exchange Commission.
(Copyright 2009 by The Associated Press. All Rights Reserved.)
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