William Carleton Pleads Guilty in $6 Million Securities Fraud Over 7-Year Cherry-Picking Scheme
Updated
Updated · Wealth Management · Sep 18
William Carleton Pleads Guilty in $6 Million Securities Fraud Over 7-Year Cherry-Picking Scheme
1 articles · Updated · Wealth Management · Sep 18
Summary
Federal prosecutors said Carleton admitted in New York to securities fraud after steering profitable trades to himself and shifting losing positions to clients, exposing him to a maximum 20-year prison sentence.
From 2015 to 2022, the former Cetera advisor used discretionary control over as many as 50 client accounts, keeping same-day winners in his own accounts and assigning losers to clients.
About 70% of trades in Carleton’s personal accounts posted same-day gains, versus 16% in client accounts, and the scheme generated roughly $6 million in fraudulent profits, according to court documents.
The SEC began investigating in 2022 after Carleton allegedly denied reassigning personal trades to clients; Cetera said it fired him in late 2023 and later tightened controls.
A 2024 SEC case and multiple customer disputes followed, including one $1.75 million settlement, extending the fallout beyond the criminal plea.