Ex-Morgan Stanley Advisor in El Paso Sentenced for Multi-Million Dollar Fraud - Internewscast Journal

EL PASO, Texas (KTSM) – Jesus Rodriguez de la Cruz, a former financial adviser at Morgan Stanley in El Paso, has received a 12-year prison sentence for his role in a multi-million dollar fraud scheme. This verdict was announced by the U.S. Attorney's Office for the Western District of Texas, highlighting the serious nature of the financial misconduct committed by Rodriguez de la Cruz.

Between May 2018 and August 2021, the 46-year-old misled both Morgan Stanley and its clients by providing false statements and making unauthorized transfers. The U.S. Attorney's Office detailed how he moved funds from Morgan Stanley and its clients’ accounts into accounts he controlled for personal benefit. This fraudulent behavior included creating fake documents and impersonating clients to facilitate illegal transactions.

In one striking example, Rodriguez de la Cruz falsely claimed that a client had authorized a transfer of over $48,000 for a real estate purchase in El Paso. This resulted in a wire transfer from the client's account to an account belonging to one of his family members. Additionally, he purchased a Lamborghini after executing a fraudulent transfer of approximately $125,000 from a client's account.

The extensive ramifications of his actions led to Morgan Stanley suffering losses exceeding $5 million due to Rodriguez de la Cruz's schemes. Notably, he failed to report any of the embezzled money as income on his tax returns from 2017 to 2021, further compounding his legal troubles.

Rodriguez de la Cruz was indicted by a federal grand jury in December 2023, arrested in January 2024, and ultimately pleaded guilty in November to multiple charges including wire fraud and aggravated identity theft. His case illustrates the severe consequences that can arise from financial fraud and the importance of regulatory vigilance in protecting clients and institutions.