Newton Psychologist Agrees to Plead Guilty to Fraud and Money Laundering

BOSTON - A Newton, Mass. psychologist has been charged and has agreed to plead guilty to allegedly defrauding two victims, his psychotherapy patient and one of his own relatives.

Eric Brown, 76, has agreed to plead guilty to an Information charging him with two counts of wire fraud and one count of engaging in an unlawful money transaction. A plea hearing will be scheduled at a later date.

According to court filings, Brown was a psychotherapist to a Massachusetts victim who had been injured after being struck by a drunk driver. In February 2022, the victim allegedly asked Brown to serve as the trustee of a trust benefitting the victim. The trust held approximately $700,000, which was the victim's settlement from the accident. As trustee, Brown allegedly had exclusive control over the victim's money and a duty to use it for the victim's health, support and maintenance. Brown then allegedly fell victim to an online investment confidence scam. At the direction of a scammer pretending to be in an online relationship with him, Brown allegedly depleted the trust without telling the victim why, to invest $600,000 of the victim's money overseas.

Separately, Brown allegedly deceived a family member into lending him an additional $310,000. Brown falsely told his relative that he needed the money to finance improvements on a commercial office building that Brown owned. Brown allegedly did not tell his relative about his online relationship or the overseas investment he intended to make.

The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss, whichever is greater. The charge of money laundering provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $500,000 or twice the value of the property involved in the transaction, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

United States Attorney Leah B. Foley and Ted E. Docks, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorney Seth B. Kosto, Chief of the Securities, Financial & Cyber Fraud Unit, is prosecuting the case.

The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.