BOSTON, Nov. 19 2004 – LAWFUEL – Law, legal, attorney news – United S…

BOSTON, Nov. 19 2004 – LAWFUEL – Law, legal, attorney news – United States Attorney Michael J. Sullivan; Kenneth W. Kaiser, Special Agent in Charge of the Federal Bureau of Investigation in New England; Joseph A. Galasso, Special Agent in Charge of
the U.S. Internal Revenue Service, Criminal Investigation; and Peter Zegarac,
Acting Postal Inspector in Charge of the U.S. Postal Inspection Service for
New England, announced today that BRADFORD C. BLEIDT, age 50, of 8 Nortons
Point, Manchester-By-The-Sea, Massachusetts, was arrested on a criminal
complaint charging him with mail fraud in connection with a scheme in which he
allegedly defrauded over one hundred investors of millions of dollars.

“At least 140 people just one week ago believed their savings were secure
and safe. Today’s charges mean that many of those individuals’ life savings
have been lost and their retirement plans ruined,” stated U.S. Attorney
Sullivan. “The victims of this unconscionable fraud have the pledge of the
U.S. Attorney’s Office and of all our partners in law enforcement to do
everything possible to hold Mr. Bleidt accountable for the havoc he has
wreaked and to examine all possible avenues, no matter how remote, to recoup
any and all monies they have lost.”

According to an affidavit filed in support of the complaint, BLEIDT
engaged in a scheme to defraud approximately 140 individuals of more than $10
million dollars. For more than 10 years, BLEIDT was the president of
Allocation Plus Asset Management Company (“APAM”), and Financial Perspectives
Planning Services, Inc. (“FPPS”), both located at 205 Portland Street in
Boston. Both companies were in the business of providing investment advisory
services. It is alleged that in about the mid-1980’s, BLEIDT began a scheme
to defraud customers. It is alleged that BLEIDT obtained funds from customers
purportedly for the purpose of investing those funds through APAM in a variety
of legitimate securities instruments, including money market funds. It is
alleged that in reality BLEIDT used the customer funds for his own personal
and business purposes.

It is alleged that, to further his fraudulent scheme, BLEIDT issued
regular account statements to customers which falsely reflected that the
customers’ funds had been invested in legitimate securities investments and
also reported a false value for the investments. It is also alleged that, to
further conceal the scheme, BLEIDT issued some customers regular payments
which he claimed to be annuity payments.

“Because of the considerable coordination amongst the agencies involved,
the FBI has been able to quickly respond to these allegations,” stated FBI
Special Agent in Charge Kaiser. “Without this extraordinary effort an arrest
would not have happened so quickly.”

BLEIDT was arrested late this afternoon by federal officials. BLEIDT will
remain in federal custody over the weekend and will have an initial appearance
on Monday afternoon before U.S. Magistrate Judge Joyce London Alexander. If
convicted, BLEIDT faces a maximum sentence of 20 years in prison, to be
followed by 3 years of supervised release, and a $250,000 fine.

The U.S. Attorney’s Office has established a toll-free hotline for victims
to call. It contains a recorded message advising victims of when, where and
how they can submit information concerning any losses they believe they have
suffered. The victim hotline number is 1-888-221-6023, Extension #1.

The investigation is continuing.

The investigation is being conducted by the Federal Bureau of
Investigation, the U.S. Internal Revenue Service, and the U.S. Postal
Inspection Service with assistance from the U.S. Securities and Exchange
Commission and the Massachusetts Secretary of State Securities Division. It is
being prosecuted by Assistant U.S. Attorney Mark J. Balthazard in Sullivan’s
Economic Crimes Unit.

Scroll to Top