Trader gets 5-year term for securities fraud

ST. LOUIS (AP) - A securities trader from St. Louis County has been sentenced to more than five years in prison for defrauding clients.

Federal prosecutors say 61-year-old Grahame Rhodes, of Town and Country, was sentenced Friday in U.S. District Court. He pleaded guilty in December.

In addition to the prison time he must pay restitution of $1.9 million to the victims.

Court documents show that Rhodes solicited family members, neighbors and friends by promising high rates of return on investments. Authorities say he returned some money to investors and represented it as profits, but it was actually money from new investors.

Prosecutors say Rhodes did not invest the money and in many cases converted it to his own personal use.

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