In a serious case out of Newton, Massachusetts, Eric Brown, a 76-year-old psychologist, has agreed to plead guilty to federal charges of fraud and money laundering. Authorities allege that Brown defrauded two victims, including a psychotherapy patient and one of his own relatives, violating the trust they had placed in him.
The patient had suffered injuries after being struck by a drunk driver and later received a settlement of approximately $700,000. In February 2022, Brown was asked to serve as the trustee of a trust established for the patient. As trustee, he had exclusive control over the money and a legal obligation to use it solely for the patient’s health, support, and maintenance.
According to court filings, Brown allegedly fell victim to an online investment confidence scam. A scammer posing as someone in a romantic online relationship convinced him to transfer $600,000 of the patient’s money overseas. Brown allegedly did not inform the patient about the transfer or the risks associated with the investment, effectively depleting the trust without the patient’s knowledge.
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Family Member Also Allegedly Deceived
The allegations do not stop with the patient. Brown also reportedly deceived a family member to obtain an additional $310,000. He claimed the money was needed to finance improvements to a commercial office building he owned. In reality, the relative was not told about Brown’s online relationship or the overseas investment that he intended to make with the patient’s funds.
These alleged actions resulted in two counts of wire fraud (using electronic communication to trick someone and illegally take their money) and one count of unlawful money transaction (money laundering). Federal law treats these offenses very seriously.
Wire fraud carries a maximum sentence of 20 years in prison, along with up to three years of supervised release (a period after prison when a person must follow rules and report regularly) and fines up to $250,000 or twice the gross gain or loss, whichever is greater. Money laundering carries up to 10 years in prison, three years of supervised release, and fines up to $500,000 or twice the value of the property involved.
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Legal Proceedings and Federal Involvement
The case is being prosecuted by Assistant U.S. Attorney Seth B. Kosto, Chief of the Securities, Financial & Cyber Fraud Unit. The announcement was made by United States Attorney Leah B. Foley and Ted E. Docks, Special Agent in Charge of the FBI Boston Division.
Brown has agreed to plead guilty, and a plea hearing will be scheduled at a later date in federal court. It is important to note that the details in the court documents are allegations. Brown is presumed innocent until proven guilty beyond a reasonable doubt in a court of law, despite his agreement to plead guilty.
The charges emphasize the responsibilities that come with managing other people’s money. Trustees are expected to act in the best interest of the beneficiaries, and violating that duty can carry severe criminal consequences. Federal judges use the U.S. Sentencing Guidelines to determine sentences in such cases, taking into account the nature and extent of the fraud, as well as the financial loss suffered by the victims.
This case highlights the serious legal implications of financial misconduct, particularly when a trusted professional misuses funds entrusted to them. Both the patient and the family member are recognized as victims under federal law, and the government is pursuing the case to hold Brown accountable for the alleged misconduct.