Decatur Investment Advisor Sentenced to Prison in Fraud Scheme

A federal judge sentenced a Decatur man Monday to more than seven years in prison stemming from a scheme in which he bilked more than $2.5 million from his clients.

Benjamin Daniel DeHaan, 37,  was remanded immediately to the custody of the U.S. Marshal. 

U.S. District Judge Steve C. Jones also ordered him to serve three years of supervised release following his prison term and ordered him to pay more than $6.93 million in restitution to the 50 victims he defrauded.

The sentencing followed DeHaan's Feb. 1, 2013, guilty plea to wire fraud charges.

“This defendant may have started out as a legitimate investment advisor, but he got greedy and began stealing from those who trusted him with their investments,” U.S. Attorney Sally Quillian Yates said in a statement.

“He diverted money from his clients’ accounts and used it to fund a lavish lifestyle. Now, he is headed to prison and will never work in the securities industry again.”

DeHaan owned and operated Lighthouse Financial Partners, LLC, an Atlanta-based investment advisory firm. He recruited investors via a series of videos on Lighthouse’s website and on YouTube.

DeHaan told investors he developed a proprietary software program that allowed him to determine when to buy and when to sell particular securities.  About 114 people entrusted him with money to invest on their behalf.

At its peak, Lighthouse had approximately $6.7 million in assets under management.

Prosecutors said between January 2010 and May 2012, DeHaan misappropriated and converted to his own use more than $2.5 million of his clients’ money.

He used the fraud proceeds to purchase a new house for himself in Memphis and to purchase partial ownership of a restaurant and bar in Memphis.

DeHaan also used his clients’ money to fund an investment account in his own name and to pay Lighthouse’s overhead and operating expenses.

He attempted to cover-up his theft by emailing fraudulent account statements to investors.