Phoenix, Arizona - Attorney General Mark Brnovich announced Richard Mark Schmerman, a former investment adviser representative, was sentenced to 5 years in prison and 7 years of probation for stealing more than $3 million dollars in client funds. Schmerman must also pay more than $3 million dollars in restitution to his victims.

Schmerman is a former registered securities salesman and investment adviser representative operating under Diversified Financial in Arizona. Schmerman used client investment funds to pay for personal expenses including a single payment of more than $400,000 to a civil judgment issued against him.

Schmerman also impersonated some of his clients to gain access to their investment accounts.

The Arizona Corporation Commission’s Securities Division investigated this case.

Assistant Attorneys General Adam J Schwartz and Joseph Waters are prosecuting this case.