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Ex-Boston officer charged with wire fraud

Allegedly lured bad investments

A retired Boston police officer is facing wire fraud charges in federal court in New York, according to authorities.

Daniel Rice, 50, of Stoughton, was arrested Friday on charges of wire fraud and conspiracy to commit wire fraud, the FBI said in a statement.

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He was released after appearing in federal court in Boston and is scheduled to be arraigned in Buffalo Friday.

Court records did not list a lawyer for Rice. A call to a number listed for him was not returned Monday night.

According to prosecutors, Rice, owner of the now-defunct Security Financial Development LLC, steered investors to companies that were controlled by an alleged accomplice, Michael Wilson, formerly of Hamburg, N.Y.

Rice allegedly convinced a Montana broker, identified in court records as C.B., to wire $250,000 in March 2009 to one of Wilson’s companies, even though Rice knew that the “companies failed to pay out on deals promising large returns in short periods of time,” the FBI statement said.

In January 2010, the same broker wired $100,000 to Rice, who kept $40,000 for himself and transferred the rest to a bank account for Wilson in Buffalo, authorities said.

Another investor’s funds, totaling $71,875, were wired to bank accounts in the Buffalo area for a Wilson company in July 2010, officials said.

“None of these deals paid out” to the investors, the FBI statement said. “The only money ever recovered was the $71,875 wired . . . in July 2010, which was recovered because the government quickly applied to have the receiving bank accounts frozen. The funds eventually were returned to the investor, who lives in Utah.”

It was not clear Monday night when Rice retired from the Boston Police Department. Boston police did not respond to inquiries about his dates of service.

City records show that he earned $107,111 in 2012 as a detective. He is not listed as a department employee on the 2013 payroll.

The FBI statement noted that the Boston police Anti-Corruption Division assisted in the investigation.

Rice started Security Financial in 2007, and it was dissolved in 2011, according to records posted on the website of Secretary of State William F. Galvin’s office.

The company stated in a 2007 filing that it would “promote and conduct financial solution services” for construction and renovation projects and “engage generally in any activity which may be lawfully carried on by a for-profit corporation” in Massachusetts.

Travis Andersen can be reached at
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