Former financial planner gets prison time for fraud

Cameron Howat, a former financial planner in the North Hills, was sentenced to two years in federal prison Wednesday for ripping off 10 investors in a foreign-exchange trading scheme.

U.S. District Judge David Cercone also ordered him to pay $420,000 in restitution.

Howat, 57, of Hampton, had asked for probation so that he could keep working and repay his victims. He said it would serve no purposeto put him in prison.

But Assistant U.S. Attorney Shawn Sweeney said he stole from his clients immediately after receiving their funds and continued to steal from them over time, although he has paid much of themoney back.

“This was greed and selfishness at his friends’ expense,” Mr. Sweeney said in arguingfor prison.

After hearing from several victims, including former Pittsburgh Steeler Steve Avery and David Stoner, the former assistant director of the David L. Lawrence Convention Center and former national sales director for the Greater Pittsburgh Convention & Visitors Bureau, the judge sided withthe government.

“This went on for four years,” Judge Cercone said. “He didn’t stop until he got caught.”

As he has often done in white-collar sentencings, the judge said probation is not an option because it sends a message that a fraudster can simply agree to pay restitution after he’s caught stealing and stay out of jail.

“The message has to be that crime doesn’t pay,” the judge said.

Howat waived indictment in June and pleaded to wire fraud following an investigationby the FBI.

Before the sentencing, he said he didn’t set out to harm anyone and has been working to pay everyone back.

“At no point did I intend economic harm to anyone,” he said. “I very much want to complete what I have begun.”

But he also leveled an accusation against Mr. Stoner, saying Mr. Stoner had initially invested with him and then threatened to kill him unless Howat paid him. He said he had to then fleece other investors to come up with the money to repay Mr. Stoner.

Mr. Stoner, who said he hadn’t intended to speak, marched up to the podium andangrily denied threatening anyone. Rather than expressing remorse, he said, Howat was trying to deflect theblame.

“He had the opportunity to say I’m sorry,” Mr. Stoner told the judge. “He chose to lie to you.”

Prosecutors said Howat told investors he was an expert in foreign-exchange trading. He said he would split the profits 50-50 with them.

Instead, he took their money, nearly $1 million in all, and used some of it for himself.

In addition to everyday expenses, Mr. Sweeney said, he gave $50,000 to his wife for her business, sent $19,000 to Grove City College for tuition for one of his children, and spent $18,000 on restaurantmeals.

As part of the scheme, Mr. Howat prepared false account statements to deceive the victims into believing he had invested their moneylegitimately.

Judge Cercone allowed Howat to self-report to prisonby June 15.