MN Financial Advisor Sentenced for Stealing Millions from Clients

St. Paul, MN (KROC-AM News)- A Minnesota financial advisor has been sentenced for stealing millions of dollars from her clients.

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That’s according to a news release issued by the U.S. Attorney’s Office in Minnesota. She pleaded guilty to one count of wire fraud in the federal case in March.

48-year-old Kristi Margaret Berge, who is the founder and CEO of an Edina-based investment and financial services firm known and co-owner of real estate investment company J&K Connect LLC, was accused of stealing $2.1 million in client investments from June of 2020 through February of 2023.

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Edina, MN Financial Advisor Ordered to Serve Time in Prison, Pay Restitution for Stealing Over $2 Million from Clients

Federal Court documents said Berge’s clients were under the impression that she would keep their investment funds in individual retirement accounts, 401K retirement plans and other safe investment accounts.

Instead she would withdraw their money in amounts that varied between $5,000 and $220,000 and deposit those funds in bank accounts she controlled, court documents allege.

Berge would then use the client funds to buy properties in Edina for her real estate business.

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She would conceal the withdrawals by fraudulently labeling them as "management” or “administrative” and by creating fake records that indicated she had authorization to withdraw her clients investment funds, court documents say.

The Edina woman was sentenced on Wednesday to 30 months in prison, which will be followed by two years of supervised release. She’s also ordered to pay $2,104,395 in restitution.