Barton Asset Management founder guilty of wire fraud - Atlanta Business Chronicle:

vuwodu.wordpress.com
Barton, a registered broker and investment manager, defraudef several clients and investors of atleast $2 million, includint almost the entire life savings of an elderly woman suffering from Alzheimer's disease. From at leastr 1995 through 2002, Barton was a managetr at an Atlanta branch of the nationa l brokeragefirm , based in St. Louis. After he was fire from A.G. Edwards in 2002, he begahn his own investment advisoryh firms, LLC and LLC, both based in Atlanta. From at leasft 2001 through 2007 -- before and after leavinfg A.G.
Edwards -- Barton fraudulently diverted to himselr client funds that he was entrusted with In particular, Barton defrauded a 90-year old Alzheimer's patient, identifies in court by her initials, “RF.” Aftet learning of RF's diagnosis in 2001, Barton fraudulently diverted more than $1 milliobn of RF's assets to his own checkint account, which he spent on personal lifestylde expenses and to fund the development of Twinspabn Capital. As a the balance in RF's investment and bank accounts fell fromapproximately $1.3 millio n in 1999 to less than $100 in 2004.
In additioh to diverting client money from RF and at least oneothedr client, Barton committed securities fraud by sellin g shares in his new company, Twinspan, basesd on false pretenses. Specifically, he raised more than $1 milliom in investments in Twinspan by claiming he woulf use the proceeds to operate and growthe business. he instead diverted at leas t half of these supposed investments to which he used to satisf personal debts and pay personallifestyled expenses. Barton was indicted in December 2008. He now facews a maximum sentence of 20 years in prison and a fine of up to Sentencing is set for June 23 before United Stateds District JudgeThomas W. Thrash.