Minneapolis Money Manager Faces Embezzlement Charges

The embezzlement charges were just part of a 16-count indictment against David Welliver that also included accusations of wire fraud and failure to file annual reports. The indictment, unsealed in the U.S. District Court in Minneapolis, accuses Welliver, 43, of embezzling approximately $30,000 from the retirement savings and pension accounts of five employees and wiring the money to accounts in New York and Delaware for his own use, according to a Minneapolis Star Tribune report.

However, the indictment, which caps a lengthy investigation, is not related to Welliver’s handling of the Minneapolis police and fire pension fund investments, for which he never faced any criminal charge.   Instead they stem from his handling of employee funds at the now defunct D.B. Welliver & Co. Inc., Rothschild Capital Corp. and Rothschild Investments Advisors Inc.; businesses he owned and controlled.

The indictment accuses Welliver of misappropriating monies from employee accounts on five dates from May 29, 1998, through June 15, 1998.   Under federal law, Welliver faces a maximum sentence of 60 years in prison and up to $2.8 million in fines.

Even though Welliver was never charged with any illegal activity surrounding his actions at the police and fire fund, it did not lead to several investigations, infighting and civil lawsuits. This culminated in March 2002, when Welliver, without acknowledging any wrongdoing while managing the funds, agreed to repay $14.6 million dollars to the retirement accounts.