A former broker registered with Wells Fargo and Morgan Stanley received a 30-month prison sentence for defrauding his clients out of more than $1.6 million, according to local news reports.

Elias Herbert Hafen was charged in September with defrauding his clients from 2011 until 2018 by offering them a 6% annual return on investments outside the brokerage where he worked. Hafen convinced the clients to transfer money from the accounts at the brokerages where he was registered and deposit it in his personal bank account. He then spent the money on personal expenses, including a house and a car.

Hafen pleaded guilty to investment advisor fraud on September 4, according to the U.S. Attorney’s Office for the Southern District of New York.

Earlier this week, U.S. District Judge Alvin Hellerstein sentenced Hafen to 30 months in prison and three years of supervised release, according to STL.news. Hafen was also ordered to pay restitution of $745,000 and forfeit $806,750, the web publication writes.

Hafen began his financial services industry career in 1979 with Merrill Lynch and had stints at four other firms before joining Morgan Stanley in 2008, according to his BrokerCheck profile. He left Morgan Stanley for Wells Fargo in March 2018, but the firm discharged him in August of the same year after “Hafen admitted to entering into financial arrangements with clients that were not approved by the firm,” according to his record.

Finra barred Hafen in October 2018 for failing to provide requested documents, according to BrokerCheck.

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