Investigation of Kirkland broker turns up 20 investors who may have lost $8M

State regulators say they have identified more than 20 investors who may have lost as much as $8 million — with more calling every day — as the investigation into Kirkland securities broker Rhonda Breard continues.

One Seattle trial lawyer, representing a Seattle couple who had invested more than $400,000, said his clients have been interviewed by the FBI. The FBI acknowledged that it is monitoring the investigation by the state Department of Financial Institutions (DFI) into the 47-year-old Breard, the president of Kirkland-based Breard & Associates Wealth Management, a boutique investment firm that targeted well-heeled investors.

DFI announced its investigation into Breard last week after receiving complaints of missing money and apparently falsified monthly statements. ING Financial Partners, the Dutch-based investment giant that licensed her, pulled Breard's brokerage certificates on Feb. 10.

Her waterfront office in Kirkland closed its doors the same day, and Breard has been incommunicado since. She has retained a Seattle white-collar criminal defense attorney, Ronald Friedman, who has said Breard is cooperating with the regulatory agency and law enforcement.

She has not been charged with a crime.

Suzanne Sarason, the director of enforcement for DFI, said the agency has identified roughly 20 Breard investors who appear to be missing money. Some had accounts that didn't contain the amounts reflected on statements, "and others thought they had accounts that simply didn't exist," she said.

The amount of apparently missing money involved so far, she said, "is between $7 million and $8 million and we're still hearing from people." Sarason said there are other investors whose accounts appear complete.

DFI posted a consumer alert on its Web page Tuesday, urging Breard's customers to confirm their accounts with ING Financial Partners and if discrepancies are found to file a complaint with the state agency.

Breard was licensed by ING to sell securities in nine states: Washington, Oregon, Nevada, New Mexico, Wyoming, Arizona, North Carolina, West Virginia and Michigan.

Investors are already retaining lawyers, who are focusing on ING's responsibilities in monitoring its independent contactors.

Matthew King, a Seattle lawyer representing a couple who had invested more than $400,000 with Breard, said three accounts that contained that money — all documented on account statements from Breard & Associates — "simply don't exist."

Seattle attorney John Bender said Wednesday he represents two clients who are out more than $1 million, including a 61-year-old Seattle Pilates teacher, Gordon Overbye, who looks to have lost nearly $856,000.

Several other large, national law firms have announced "investigations" into Breard's case and some are actively soliciting clients. One, Chicago securities attorney Andrew Stoltmann, already has a Web site up: www.rhondabreardscam.com.

Breard hosted a Q&A investment television show, "Help Me Rhonda," and sponsored investment forums and seminars throughout the Northwest. She lives in a $2.6 million home on Lake Washington, has numerous luxury cars and other valuable property, according to county records and news reports.

Mike Carter: 206-464-3706 or mcarter@seattletimes.com

Information in this story, published Mar. 3, was corrected Mar. 4. A previous version of this story erroneously reported that Rhonda Breard had a show which aired on KING-TV. Breard actually purchased commercial time on KING-TV and its sister station, Northwest Cable News.