Ex-Lehman Broker Sentenced to 7 Years

Ex-Lehman Bros. Holdings Inc. stockbroker Frank Gruttadauria was sentenced to seven years in prison for stealing from his customers and overstating their accounts by $277 million.

At the sentencing before U.S. District Judge John Manos, Gruttadauria, who worked at Lehman and SG Cowen Securities in Cleveland, apologized to the scores of investors from whom he stole $50 million. He had lied that their worthless stock portfolios were worth millions of dollars.

Gruttadauria, 44, pleaded guilty in August to securities fraud, mail fraud, identity theft and making false statements to a bank.