WASHINGTON -- A unregistered Missouri broker was sentenced to 27 months in prison for defrauding customers of a failed Illinois thrift, most of them elderly.
John Arnold of St. Louis told customers at Olympic Financial Services Corp. of Alton, Ill., that he would invest their funds in secure Government National Mortgage Association mutual funds. Instead, he put $1.4 million into his own account.
Investors at Olympic Financial, affiliated with the failed Olympic Federal Savings Association of Berwyn, Ill., lost about $200,000 from his actions, the government said.
Mr. Arnold had pleaded guilty in April. He was ordered to repay the losses, according to the Resolution Trust Corp.
He also was charged with directing Olympic Financial brokerage business to his own company, ECI of Ballwin, Mo., which was not registered as a broker-dealer.
Mr. Arnold was accused of misappropriating $47,880 in brokerage commissions through this scheme.