The Record Newspapers - Hometown News For Orange County, Texas

A 34-year-old Kountze, Texas man has been sentenced to federal prison for federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

David R. Newsom pleaded guilty on May 16, 2012, to interstate transportation of money taken by fraud and was sentenced to 30 months in federal prison today by U.S. District Judge Marcia Crone. Newsom was also ordered to pay restitution in the amount of $432,765 to JPMorgan Chase Bank.

According to information presented in court, since 2007, Newsom was an investment advisor for the Beaumont and Orange branches of Chase Bank and had broad discretion in the withdrawal and transfer of funds.

An investigation revealed that from January 2009 to July 2011, Newsom made unauthorized withdrawals from five different client investment accounts on twenty different occasions totaling $432,765.

The investigation also showed that the client funds were used to pay Newsom’s personal expenses.

Newsom arranged the withdrawals by authorizing the issuance of cashier’s checks payable to a bank and a credit union where the defendant maintained credit card accounts.

The cashier’s checks ranged in amount from $8,280 to $61,317 and were used to pay Newsom’s credit card balances.

Newsom was ordered to report to the U.S. Marshals Service on Dec. 14, 2012 to be transported to prison.

This case was investigated by Federal Bureau of Investigation and Chase Bank and prosecuted by Assistant U.S. Attorney Robert L. Rawls.