A financial adviser from Trophy Club pleaded guilty to spending $1.5 million of his clients’ money, the U.S. Attorney’s Office for the Eastern District of Texas announced this week.
Doug McKelvey, 58, pleaded guilty Tuesday to federal money laundering charges before U.S. Magistrate Judge Kimberly C. Priest Johnson.
From 2009 to 2022, McKelvey, who was a vice president and financial adviser at Morgan Stanley — a financial services and banking company — misappropriated at least $1.5 million of investor funds held in brokerage accounts, according to information presented in court.
The money was supposed to be invested on behalf of his clients. Instead, McKelvey used it to pay for personal trips, cruises, restaurant and salon bills, and other personal expenses, according to the U.S. Attorney’s Office.
McKelvey faces up to 10 years in federal prison.
A sentencing hearing will be scheduled after a presentence investigation is completed by the U.S. Probation Office.
The case is being investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Anand Varadarajan.
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