A former Lake Oswego financial adviser pleaded guilty in federal court Tuesday to one count of wire fraud for defrauding clients of his investment firm, Iris Capital Management Group, LLC.
According to the U.S. Attorney's Office, Shayne Kniss, 42, offered real estate investment opportunities to multiple investors, but misrepresented how he would manage the funds. Between February 2011 and April 2013, 47 people invested more than $4.3 million.
Kniss used the money to make payments to prior investors, the U.S. Attorney's Office said, and spent more than $500,000 on personal uses such as a retail marijuana business.
"Investment advisors are legally required to act in the best interest of the clients. This defendant did the exact opposite." said Billy J. Williams, U.S. Attorney for the District of Oregon. "Kniss lied to and took advantage of his clients, many of whom were over 65, to fund his own personal pursuits."
Kniss faces a maximum sentence of 20 years in prison, a fine of $250,000 or twice the gross financial losses resulting from his fraudulent actions if they were greater than $250,000, and three years of supervised release. He will be sentenced on August 22, 2018 in U.S. District Court.
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