A Newton psychologist has agreed to plead guilty to charges of wire fraud and money laundering after allegedly defrauding two individuals, including a psychotherapy patient and a family member.
Eric Brown, 76, is accused of misusing his position as trustee for a patient who had received approximately $700,000 from an accident settlement. According to court documents, Brown was entrusted with the victim’s funds for their health and support but instead transferred $600,000 overseas as part of an online investment scam directed by someone pretending to be in a relationship with him.
In a separate incident, Brown allegedly persuaded a relative to lend him $310,000 under false pretenses. He claimed the money would be used for improvements on his commercial office building but did not disclose his involvement in the online relationship or the overseas investment.
Brown has agreed to plead guilty to two counts of wire fraud and one count of engaging in an unlawful money transaction. A plea hearing will be scheduled at a later date.
The wire fraud charge carries a maximum sentence of 20 years in prison and fines up to $250,000 or twice the gross gain or loss. The money laundering charge carries up to 10 years in prison and fines up to $500,000 or twice the value involved. Sentencing will be determined by a federal district court judge based on applicable guidelines.
“United States Attorney Leah B. Foley and Ted E. Docks, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorney Seth B. Kosto, Chief of the Securities, Financial & Cyber Fraud Unit, is prosecuting the case.”
“The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.”
