[ by Howard Haykin ]

Philip Horn, the Wells Fargo broker who pleaded guilty to defrauding more than a dozen clients will have wait before learning his punishment.  Federal Judge Gary Fees on Monday pushed back sentencing until 3/4/13.  The delay is intended to give the various parties more time to determine how much money was pilfered from customer accounts, according to lawyers representing the broker's clients. Such estimates are critical in determining sentencing length.

Horn, working out of the L.A. office of Wells Fargo, had executed and canceled trades in clients' portfolios over a 2-year period.  Meanwhile, he pocketed the profits. Wells Fargo finally uncovered the fraud in the fall of 2011.

Horn pled guilty last year to 2 counts of wire fraud, was supposed to be sentenced on 1/7/13.  U.S. prosecutors are recommending an 18-month sentence.   The amount of money owed to clients is crucial issue in sentencing since federal guidelines recommend longer sentences for larger dollar frauds.

According to court documents, prosecutors estimate the damages amounted to $732,000, although there are some who think the figure could go higher - sone estimates place the damages to client as well in excess of $1 million.

A spokeswoman for Wells Fargo declined to comment. Mr. Horn's lawyer didn't return calls for comment.
 

[ Dealbook, 1/10/13 ]