{"id":873797,"date":"2026-10-07T10:04:10","date_gmt":"2026-10-07T10:04:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/873797\/"},"modified":"2026-10-07T10:04:10","modified_gmt":"2026-10-07T10:04:10","slug":"cleveland-man-indicted-for-stealing-his-employees-401k-funds-and-client-investments","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/873797\/","title":{"rendered":"Cleveland man indicted for stealing his employee\u2019s 401(k) funds and client investments"},"content":{"rendered":"<p class=\"text | article-text\">CLEVELAND, Ohio (WOIO) &#8211; An Ohio business owner is accused of embezzling his workers\u2019 retirement savings and running connected Ponzi and mortgage fraud schemes that targeted people across Northeast Ohio.<\/p>\n<p><img decoding=\"async\" class=\"figure-img img-fluid mx-auto d-block\" fetchpriority=\"low\" loading=\"lazy\" alt=\"Department of Justice wbng\" src=\"https:\/\/www.newsbeep.com\/us\/wp-content\/uploads\/2026\/10\/7LHW67LFMBBX7GVGG7354G2TIQ.png\" width=\"980\" height=\"551\" \/>Department of Justice wbng(WBNG)<\/p>\n<p class=\"text | article-text\">A federal grand jury indicted 54-year-old Seku N. Shabazz of Cleveland, formerly known as Jason Brooks.<\/p>\n<p class=\"text | article-text\">Prosecutors say that as a licensed investment advisor and head of a wealth management firm, he withheld employees\u2019 401(k) contributions and never put them into the plan, instead using the money for business and personal expenses, including a yacht club and a private business and social club.<\/p>\n<p class=\"text | article-text\">Once that money ran out, the indictment says he launched a Ponzi-style investment scheme, raising more than $1.2 million from investors by promising to fund mortgage loans, then using the cash to support his lifestyle and to pay earlier investors and other creditors.<\/p>\n<p class=\"text | article-text\">In a separate scheme, he\u2019s accused of using two people\u2019s identities to take out a mortgage of more than $220,000 on their home without their knowledge, with part of that money allegedly used to pay about $97,000 back into the 401(k) plan.<\/p>\n<p class=\"text | article-text\">Shabazz faces charges including embezzlement from an employee benefit plan, seven counts of wire fraud, three counts of engaging in monetary transactions in criminally derived property, and two counts of aggravated identity theft. He has not been convicted, and prosecutors stress that an indictment is only a charge and he is presumed innocent unless the government proves otherwise in court.<\/p>\n<p class=\"text | article-text\">Authorities say anyone who thinks they may be a victim should contact the FBI Cleveland office.<\/p>\n<p>Copyright 2026 WOIO. All rights reserved.<\/p>\n","protected":false},"excerpt":{"rendered":"CLEVELAND, Ohio (WOIO) &#8211; An Ohio business owner is accused of embezzling his workers\u2019 retirement savings and running&hellip;\n","protected":false},"author":2,"featured_media":873798,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[39],"tags":[28,229694,16675,11897,147,530,4814,29206],"class_list":["post-873797","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-business","tag-creast","tag-justice-department","tag-logo","tag-personal-finance","tag-personalfinance","tag-seal","tag-united-states-department-of-justice"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/873797","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=873797"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/873797\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/873798"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=873797"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=873797"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=873797"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}