FOR IMMEDIATE RELEASE

HILL COUNTRY WEALTH CEO SENT TO PRISON FOR MISHANDLING CLIENTS’ FUNDS

San Antonio, Texas: November 30, 2009:

This afternoon Jeremy McGilvrey, 32, former CEO of Hill Country Wealth, was sentenced to 20 years in the Texas Department of Corrections by 186th District Court Judge Maria Teresa Herr for two cases of Misapplication of Property by a Fiduciary, a first degree felony. McGilvrey pled guilty on both counts on October 22, 2009. Under the terms of the plea agreement McGilvrey had faced up to a maximum of thirty (30) years in prison and up to a $10,000 fine.

The case against McGilvrey arose from an investigation by the Texas State Securities Board and the District Attorney’s Office with the assistance of the San Antonio Police Department. Although McGilvrey promoted himself via Hill Country Wealth as a prudent, conservative financial advisor who used sound principles to protect client funds and investments, the State charged, and by his previous guilty plea, McGilvrey admitted that he solicited and accepted investors’ money and then diverted it to his own use. Specifically, in one instance McGilvrey solicited a $100,000 check from Anthony Knopp, 85, a Fredericksburg resident. It was found that Knopp was induced to give that money to McGilvrey with the understanding McGilvrey would invest the money on Knopp’s behalf. The Court found that contrary to that agreement, McGilvrey diverted the funds for his own use to pay off other investors. In the second instance, McGilvrey was convicted of obtaining more than $1.6 million dollars from Dorothy, age 89, and Thomas Crouch, age 93, and diverting the money for his own benefit.

Judge Teresa Herr found McGilvrey guilty on both cases and sentenced him to 20 years in the Texas Department of Corrections with a $10,000 fine. McGilvrey was also ordered to pay in excess of $1.9 million dollars. This amount includes money McGilvrey owes to other investors who were similarly defrauded. Additionally, the restitution amounts may increase if other defrauded investors are identified.

For more information, contact Adriana H. Biggs, Chief, White Collar Crime Division, at 335-2404.