If you were a financial adviser hoping to make a name for yourself by ripping off clients, how would you do it? Clients get ripped off on the reg, so it’d have to be something particularly depraved, right? Right. The plan hatched by Paula Halloran, a New Canaan resident previously employed by Smith Barney, and her husband Michael Michelsen was pretty straight forward but it got the job done. Theirs was to steal money from an 81 year-old lady who perhaps would’ve caught on sooner, had she not had Alzheimer’s and dementia.

According to police, the fraudulent activity began in 2005. Funds belonging to the victim were paid to charities, credit companies and other financial institutions, then transferred by Halloran and Michelsen for their own personal use, police said. From April 2006 to November 2008, approximately $765,213 was misappropriated and stolen from the victim, police said. However, the actual amount of money taken was more than $1 million; the statute of limitations only offers a five-year window, preventing roughly a quarter of the million to be included in the report since the activity took place in early 2005, police said.

Halloran became the victim’s financial advisor sometime in 2004 but did not begin taking her money until 2005, the report stated. She was able to take advantage of the fact that the victim was not mentally stable and had her write checks for various reasons, including “charities” and “credit card companies.” One such “charity” supposedly involved something for firefighters; Michelsen is a Wilton firefighter, however, that department was not mentioned by police.

Luckily the couple has a legitimate excuse, which is that they needed some cash to cover their “personal finances” which included building a beach house in Block Island.

New Canaan Couple Charged With Larceny [New Canaan News]

Comments (39)

  1. Posted by Guest | March 1, 2011 at 7:52 PM

    Horrible. Simply horrible.

  2. Posted by Elliot Rosewater | March 1, 2011 at 7:58 PM

    You don’t seem like a regular here.

  3. Posted by Guest | March 1, 2011 at 8:00 PM

    This is how we earn it.

  4. Posted by Guest | March 1, 2011 at 8:00 PM

    This is how we earn it.

  5. Posted by Guest | March 1, 2011 at 8:00 PM

    This is how we earn it.

  6. Posted by Guest | March 1, 2011 at 8:00 PM

    This is how we earn it.

  7. Posted by Anonymous | March 1, 2011 at 8:02 PM

    Slime.

  8. Posted by Anonymous | March 1, 2011 at 8:02 PM

    Slime.

  9. Posted by Anonymous | March 1, 2011 at 8:02 PM

    Slime.

  10. Posted by Anonymous | March 1, 2011 at 8:02 PM

    Slime.

  11. Posted by On The Ball | March 1, 2011 at 8:04 PM

    I clicked off of Redtube just to read that some old person got ripped off. What a waste of time.
    -SEC Investigator

  12. Posted by On The Ball | March 1, 2011 at 8:04 PM

    I clicked off of Redtube just to read that some old person got ripped off. What a waste of time.
    -SEC Investigator

  13. Posted by On The Ball | March 1, 2011 at 8:04 PM

    I clicked off of Redtube just to read that some old person got ripped off. What a waste of time.
    -SEC Investigator

  14. Posted by On The Ball | March 1, 2011 at 8:04 PM

    I clicked off of Redtube just to read that some old person got ripped off. What a waste of time.
    -SEC Investigator

  15. Posted by Guest | March 1, 2011 at 8:15 PM

    Standard operating procedure.

    - former Lehman Bros. exec

  16. Posted by Anonymous | March 1, 2011 at 8:18 PM

    Not remembering you ever had money is the NKI

  17. Posted by Michael Michelsen | March 1, 2011 at 8:19 PM

    You know what’s worse than having your name tarnished in the press? Having the name Michael Michelsen.

  18. Posted by Michael Michelsen | March 1, 2011 at 8:19 PM

    You know what’s worse than having your name tarnished in the press? Having the name Michael Michelsen.

  19. Posted by JR | March 1, 2011 at 8:26 PM

    The man is a firefighter and therefore a hero. I am not doing to stand by and watch you run down an American hero. By the way, it’s great that there is a statute of limitations on defrauding the mentally incompetent – the US legal system is top notch.

  20. Posted by JR | March 1, 2011 at 8:28 PM

    This might actually be a case where the client is literally asking “where is my yacht”, no?

  21. Posted by Anonymous | March 1, 2011 at 8:30 PM

    Horrible but funny.

  22. Posted by Anonymous | March 1, 2011 at 8:30 PM

    Horrible but funny.

  23. Posted by GGGuest | March 1, 2011 at 8:36 PM

    Wait 5 years? I think I got screwed here.

    - Bernie

  24. Posted by Dr. Rosenrose | March 1, 2011 at 8:38 PM

    A Smith Barney spokesperson was quoted as saying, “The fees generated by Paula and Michael equate to about 3.5% per annum, which is actually a deal for our bonds-and-cash-management package.”

  25. Posted by Dr. Rosenrose | March 1, 2011 at 8:38 PM

    A Smith Barney spokesperson was quoted as saying, “The fees generated by Paula and Michael equate to about 3.5% per annum, which is actually a deal for our bonds-and-cash-management package.”

  26. Posted by Spanishmoon | March 1, 2011 at 8:52 PM

    To Michelsen:

    “Five years ago…that’s an old crime. They ain’t even got room in jail for all these Indians from Galleon…they just f***in’ with ya…”

    Ordell Robbie – Smith Barney Compliance Chief

  27. Posted by Cork.O.Ran | March 1, 2011 at 9:00 PM

    They found a house on Block Island for a million? Maybe they’re not such douches…I’m just saying.

  28. Posted by guest | March 1, 2011 at 9:14 PM

    An old lady dares her financial advisor,”I bet you can’t tell how old I am.”
    “You’re on,” she says. She gets out the old lady’s checkbook and writes out a stack of checks and says, “Sign these,” and when the old lady’s all finished she looks over the checks carefully for a long while and finally says”A-ha, you are 81 years old.”
    “That’s increidble” the old lays says, “How did you know?”
    And her financial advisor says, “You told me yesterday.”

  29. Posted by trojan | March 1, 2011 at 9:16 PM

    Couldn’t have said it better.
    -Col. Kurtz

  30. Posted by Con Spiracy Theory | March 1, 2011 at 9:16 PM

    Didn’t we see her in a Chicopee Denny’s recently?

  31. Posted by Anonymous | March 1, 2011 at 9:19 PM

    Agreed.

    -Chad Michael Michaels

  32. Posted by Anonymous | March 1, 2011 at 9:19 PM

    Agreed.

    -Chad Michael Michaels

  33. Posted by Savage Obamamal | March 1, 2011 at 9:24 PM

    Am I missing something? I don’t see what they did wrong.

  34. Posted by Speed Kills | March 1, 2011 at 9:32 PM

    $75,000 for the Wilton Fireman Fund? How kind of you dear thanks. Hi honey it’s me, let’s go ahead and go with that Italian marble in the solarium…

  35. Posted by Guest | March 1, 2011 at 10:06 PM

    What do you expect from Morgan Stanley? Friggin thieves!

  36. Posted by Guest | March 1, 2011 at 10:06 PM

    What do you expect from Morgan Stanley? Friggin thieves!

  37. Posted by The Observer | March 1, 2011 at 10:36 PM

    This is simply wealth distribution, no concerns here.

    -Obama

  38. Posted by Lloyd | March 1, 2011 at 11:17 PM

    This is almost Gods work.

    Lloyd Blankfein

  39. Posted by bay | April 22, 2011 at 2:24 PM

    I like the fact the he (Michelson) got willed the land they built the house on, from an elderly man who was 85 years old. He (douche-bag, oops I mean Michelson) gave the elderly man the right to live on the property until his death. Which, for your information was a few months later, maybe even one month. He is just a horrible man. Would love to know how he got his filthy mitts on the land. I read a blog that said he was a hero because he was a firefighter. I would love to hear from other firefighters on that. They don’t get to much lower then him.

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