Advisor Who Tried to Flee Prosecution Pleads Guilty to Defrauding Clients

What You Need to Know

A Massachusetts advisor pleaded guilty to two counts of wire fraud, one count of aggravated identity theft, and one count of filing a false tax return.
He faces up to 25 years in prison.
Instead of investing clients’ funds, he used the money to pay for his own expenses, including to pay off gambling debts.

An advisor who was arrested Sept. 16 at Newark Liberty International Airport while trying to board a flight to Greece to flee prosecution pleaded guilty Wednesday to defrauding his clients out of over $3.5 million, according to court documents and the Justice Department.

The advisor’s victims included an older couple, who had entrusted him with making investments on their behalf with their entire $1.3 million in life savings, the Justice Department said in a news release on Thursday.

Steven Xigoros, 55, of Lowell, Massachusetts pleaded guilty to two counts of wire fraud, one count of aggravated identity theft, and one count of filing a false tax return. He faces up to 25 years in prison.

The charge of wire fraud carries a maximum sentence of 20 years in prison, three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss, whichever is greater, according to the Justice Department.

Meanwhile, the charge of aggravated identity theft carries a mandatory sentence of two years in prison to be served consecutively to the sentence imposed for wire fraud, one year of supervised release and a fine of $250,000 or twice the gross gain or loss, the Justice Department said.

And the charge of filing false tax returns carries a maximum sentence of three years in prison, one year of supervised release and a fine of up to $250,000 or twice the gross gain or loss, whichever is greater.

U.S. District Court Judge Nathaniel M. Gorton scheduled Xigoros’ sentencing for Feb. 23.

Arrested Twice

Xigoros was arrested and indicted by a federal grand jury in September 2021. While on pre-trial release, he was arrested again one year later while trying to board a flight to Athens, Greece, in an effort to avoid prosecution.