BAKER CITY, Ore. (KTVZ) — Jeffrey Thomas Higgins, a 54-year-old Baker City man, pleaded guilty to investment advisor fraud after orchestrating a nearly 17-year scheme. Higgins stole client stock shares, sold them, and funneled the proceeds into his personal bank account, defrauding at least 14 investors of more than $1.6 million.
The fraud scheme spanned from December 2007 through June 2024, during which Higgins worked as an investment advisor in Baker City. To deceive clients, Higgins falsely claimed he purchased stocks on their behalf at deep discounts, when he actually bought them at market value. He then sold these stocks without client knowledge and diverted the funds to his personal accounts.
To perpetuate the fraud, Higgins created fictitious annual statements that exaggerated profits for his clients. Statements reflecting the true costs of stock purchases were mailed…
MANAGEMENT & CULTURE (THE “TONE AT THE TOP”)
Fraud thrives in “sloppy” environments where leadership ignores the rules.
- The Fraud Triangle: For fraud to occur, three elements must be present: Pressure (the need for money), Rationalization (thinking “I deserve this”), and Opportunity (weak controls). You can only control the Opportunity.
- Whistleblower Hotline: Provide an anonymous way for staff to report “odd behavior.” Most internal frauds are caught via tips, not audits.
- Background Checks: Conduct credit and criminal record checks for all employees in financial or data-sensitive roles.
- Annual Ethics Training: Make sure every staff member knows that the company has a Zero Tolerance policy toward “borrowing” from petty cash or fudging overtime.