A few weeks after pleading guilty to Grand Larceny and Identity Theft, Steven Mandala, a former stockbroker with Maxim Group in New York City, faces a sentence of 2 to 6 years in prison, a forfeiture of a $245,580 Ferrari, and a restitution of $360,000, for using a fake identity to secure a high position within Merrill Lynch, $300 million of clients’ assets and $780,000 of compensation for his fraudulent services.
Mandala’s plan began in April 2009, when he falsely told Merrill Lynch about his partnering position in Maxim Group while applying for a position with them. Mandala supported his fraudulent claim with Merrill Lynch by submitting to them fake pay stubs, tax returns and W-2s. After Mandala’s hire, Merrill Lynch gave Mandala a $780,000 promissory note for compensation and over $300 millions of clients’ assets to manage.
However after two months of his employment, Mandala quit his job with Merrill Lynch and fled with $780,000.
