Wealth advisors should take note of a cautionary tale emerging from Florida that underscores the importance of compliance oversight and ethical boundaries in client relationships.
Eric James Stone, a former Fidelity Investments advisor based in Jacksonville, has been indicted on 15 federal counts—10 for wire and mail fraud and five for money laundering—after allegedly stealing more than $2 million from a former client. According to federal prosecutors, Stone used a complex web of deceit, including fake emails and impersonated officials, to manipulate a Maryland-based client into making over 600 payments over a two-year period.
Stone, who worked at Fidelity from 2007 until his termination in June 2021, was initially dismissed for requesting a $30,000 personal loan from the same client. That action alone violated clear ethical boundaries and led to his dismissal. He was later barred from the brokerage industry.
But the misconduct didn’t stop there.
After his termination, Stone allegedly continued to target the client, convincing him that earlier PayPal transactions had triggered a formal investigation by the payments company. Prosecutors say Stone fabricated email communications using addresses that appeared to come from PayPal employees, escalating the client’s anxiety and leading to further payments under false pretenses.
According to the federal indictment, Stone went so far as to impersonate a Florida state investigator and fabricate legal correspondence to support his narrative. He falsely claimed that the victim needed to pay mounting fees in order to recoup the original $30,000 loan.
Between July 2022 and September 2024, Stone is accused of coercing the client into sending at least 613 payments totaling $2,037,103. Prosecutors allege that these funds were then diverted for Stone’s personal use, including gambling losses, luxury travel, and the repayment of his own debts.
The case is being handled by the U.S. Attorney’s Office for the Middle District of Florida, with the IRS and FBI leading the investigation. Assistant U.S. Attorney John Cannizzaro is prosecuting.
If convicted, Stone faces significant prison time.
For RIAs and wealth management professionals, this case is a stark reminder of the trust placed in the advisor-client relationship—and how quickly that trust can be exploited when controls fail or ethical lines are crossed. It also highlights the reputational and legal risk posed by even one rogue advisor within a firm.
While the vast majority of professionals in this industry operate with integrity, this incident reinforces the need for rigorous internal supervision, ongoing compliance education, and clear boundaries when managing personal and professional interactions with clients.
