Kirkland securities broker expected to plead guilty, prosecutors say

Kirkland securities broker Rhonda Breard is expected to plead guilty next week to new charges of mail fraud in connection with the theft of millions from her investment clients, according to federal prosecutors.

Prosecutors filed new charging papers against the 47-year-old Breard on Thursday, alleging that she stole $9.4 million from 38 clients. That's an increase over earlier estimates of the losses by state regulators.

Emily Langlie, a spokeswoman for the U.S. Attorney's Office in Seattle, said the documents were filed in preparation for a change of plea hearing next week before a U.S. magistrate judge. Langlie did not know the exact day of the hearing. Breard's attorney, Ronald Friedman, confirmed a court hearing was anticipated, but declined to say more.

The new charge, called an information, is generally filed in anticipation of a plea agreement. It requires Breard to waive her right to have her case heard by a grand jury.

The government has also moved to seize Breard's three homes — including her $2.6 million Lake Washington home in Renton — and dozens of cars, trailers, trucks, boats, ATVs and a motor home. The complaint says Breard is expected to forfeit more than $100,000 in cash taken from a safe-deposit box, a cashier's check for $150,000, jewelry, a life-insurance policy and furniture.

Breard has been free on her own recognizance since she was first charged March 9.

She faces up to 20 years in prison and a fine of up to $1 million. She has been cooperating with authorities, prosecutors and her attorney say.

Breard was a licensed broker with the Dutch financial firm ING and operated Breard and Associates Wealth Management from a lakeside office in Kirkland for years. She targeted wealthy clients through a series of seminars and televised infomercials offering retirement strategies, according to the new charges.

Instead, beginning in 2004, Breard began to recommend to certain clients that they transfer money into a new product. She "did so with the intention of unlawfully converting those funds to her own use," the new charges allege. She continued to deceive her clients, the charges allege, by creating fake statements.

Several investors have already sued Breard and ING Financial Partners, the U.S.-based investment arm of the Dutch company, alleging the company failed to adequately supervise her.

A surprise ING audit in February turned up a cache of files Breard kept in a locked cabinet.

She said the cabinet held her personal tax information, but when the auditors opened it they found client files allegedly containing counterfeit account statements that Breard had been using to hide the thefts, according to court documents.

According to regulatory records, Breard was forced to quit the investment firm Smith Barney after allegations of unauthorized trading.

Two other actions against her resulted in fines totaling more than $95,000.

In 1993, Breard was censured and fined, and her license was suspended for unauthorized trading, according to records kept by the Financial Industry Regulatory Agency. The agency Wednesday announced that it had permanently barred Breard from the securities industry.

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