Federal prosecutors charged two former brokers yesterday with defrauding investors of more than $1.2 million.
Michael Beck, 33, of Washington, and George Tully, 43, of Great Falls, Va., were charged with wire fraud in separate criminal information filings. The filing of a criminal information usually means a person has agreed to waive indictment and plead guilty to charges.
The charges resulted from a probe by the Federal Bureau of Investigation and the Washington office of the National Association of Securities Dealers, where the men were registered as brokers.
Mr. Beck and Mr. Tully were employees of the Bethesda office of the New York brokerage Dominick and Dominick when the alleged thefts occurred, said Assistant U.S. Attorneys Geoffrey R. Garinther and Thomas DiBiagio.
Mr. Beck, a former securities representative at the brokerage, was charged with taking unauthorized loans totaling more than $862,000 from clients' accounts to buy shares in a real estate partnership.
Mr. Tully, a former senior account executive at the brokerage, ischarged with stealing more than $358,000 from clients in a separate scheme. He would make unauthorized transactions in clients' accounts and then steal checks drawn on those accounts, court papers said.
The two men allegedly made transactions through wire transfers.
"This is a most extreme abuse of trust," Mr. DiBiagio said, "not only because of the amount of money taken, but because of the number of clients involved."
The prosecutors said Mr. Beck stole from 11 clients, all individual investors, and that Mr. Tully victimized three individuals. Mr. Tully was Mr. Beck's mentor when the men joined Dominick and Dominick in 1985, prosecutors said. The brokerage fired both men in 1990
The men have entered agreements to make retribution to the brokerage. Each faces three years in prison without parole and a $250,000 fine.