SEATTLE - Kirkland investment advisor Rhonda Breard, who pleaded guilty to defrauding dozens of clients out of millions of dollars, was sentenced to six and a half years in federal prison Wednesday, far less than she could have faced.
The justified anger these people feel breaks my heart, said Breard in court, speaking about her clients.
As part of a plea bargain, Breard admitted to bilking more than 40 of her clients out of $12 million. The maximum sentence she could have faced was 20 years in prison and a $250,000 fine.
Breard promoted her investment expertise in television infomercials and radio spots as well as classes at community colleges. The U.S. Attorney's Office says Breard told investors their money would be placed in a variety of financial and insurance products. But instead, she used the money to furnish her lavish lifestyle and mailed phony statements to these customers.
I took my God-given talents in a way of corruption, she told the judge. I am very sorry. I am a different person than I was six months ago.
People like you do not change, said Lynn Hart, Breard's former best friend and one of her victims.
Looking for leniency, Breard wrote a two page handwritten letter, among others, to the prosecutor and judge. In it, she wrote. The truth is I did a horrible thing to many people.
Breard has also met with federal regulators, explaining how she was able to pull off her scam. She has also provided the Financial Industry Regulatory Agency with suggestions on new rules to keep others from pulling off the same crime.
Asst. U.S. Attorney Carl Blackstone says Breard's cooperation was impressive.
The government says it is confident that no one else was involved in the scheme.
But there are two other victims of Breard young ones who needed her help more than anyone. Her own children were used as human collateral by her defense team. Named inher written plea to the court to get a reduced sentence, Breard outlined intimate details of their lives and she wrote Please Judge Pechman for my children's sake let me come home soon.
I am saddened that they let that letter go out to the judge, that these kids names got put out there, said Breard's ex-husband Nick Laughton, because I have done everything I can to keep them out of the press. This isn't their ... you know, they have to live this down.
Breard was allowed to leave court a free woman for now. Prosecutors wanted a longer sentence. The victims did, too. Some went so far as to call her an actress.
(She) robbed us methodically and deliberately, said Nancy McGill.
I think she is a sociopath, said Jon, another victim. Unlike the ponzi scheme with (Bernie) Madoff where he had to pay out money, she wasn't making payouts. She was just spending more money.
The victims were angry and they are rightfully angry, said prosecutor Matthew Diggs
The judge did not order a fine, saying any money should go to Breard's victims. The government also wants to hold something of a garage sale to try and recover some of the missing money. On the list:
- A 2006 Dodge Charger
- A 2006 Ford F-350
- A 2007 Honda Element
- A motorcycle
- 4 Yamaha ATVs
- 3 Kawasaki jet skis
- 6 Ski Doos
- A Toyota Tacoma pickup
But with Breard's homes already heavily leveraged, it not clear how much she will ever really repay her victims.
Lawyers representing Breard's victims say settlement talks continue with ING Financial Partners, the investment giant which licensed Breard.Prosecutors say Breard's clientswill most likely will get their money back.
