The Securities and Exchange Commission said Gary J. Martel, a former Chelsea broker, was sentenced earlier this month to more than seven years in prison for defrauding investors. A judge in federal court also ordered him to pay restitution to victims of nearly $3.3 million.
Martel, 55, had pled guilty to criminal charges of mail fraud and wire fraud brought by US Attorney Carmen M. Ortiz for the District of Massachusetts. Martel’s scheme to defraud investors took place from 2004 to 2012, during which time he took client funds for his personal use, rather than investing the money on their behalf.
Separately, the SEC had filed civil fraud charges against Martel in June 2012. He had been doing business under the names Martel Financial Group and MFG Funding. The regulator has banned him from the securities industry and won a judgment against Martel to repay nearly $4 million and pay a penalty of $3.3 million.
Martel is a former planning committee member for the city of Chelsea.