NEW YORK: The CFA Institute’s former chief marketing officer is ordered to spend at least three, and as many as nine years behind bars, for embezzling almost US$6mil from the financial education group and another company.

Michael J. Collins was sentenced on Monday in the New York state court.

Collins, 62, pleaded guilty in April to two counts of grand larceny, admitting he stole the money to fund a lavish lifestyle that included club memberships, travel and the purchase of a US$150,000 engagement ring.

Collins, who worked at the CFA Institute from 2016 to 2022, was charged in June 2025 with using his position as a marketing executive to hire outside consulting firms that he’d created.

The institute paid these entities nearly US$5mil based on fake invoices for “non- existent work”.

The value of its flagship Chartered Financial Analyst certification, has been questioned by some due to the high cost of its exams, lengthy preparation time and low pass rates.

In a victim impact statement read in court by prosecutors on Monday, the CFA Institute alluded to that criticism, saying Collins’ theft damaged its brand, which it called its “most valuable asset”.

At his sentencing, Collins apologised for his actions and told New York state Justice Julieta V Lorenzo that he took “full responsibility”. — Bloomberg

It said the crimes had resulted in a “loss of trust” in the organisation and undermined its efforts to promote ethical and professional conduct in the financial industry.

Collins’ three-to-nine-year sentence means Collins will be eligible for parole after serving three years.

If denied parole, he could end up spending nine years behind bars.

At his sentencing, Collins apologised for his actions and told New York state Justice Julieta V Lorenzo that he took “full responsibility”. He was taken into custody after being sentenced.

“I hope this sentencing sends a message to New York executives who exploit Manhattan businesses –you will be held accountable,” Manhattan District Attorney Alvin Bragg said in a statement.

“He looks forward to paying his debt and being a productive member of the community upon his release,” Collins’ lawyer, Seth Zuckerman, said in a statement.

A person familiar with the matter said at the time of the indictment that Collins’ other victim was Boundless Learning Inc, a former unit of educational publishing company Pearson Plc, where he worked from 2022 to 2024.

Using the scheme involving fake consulting firms, Collins stole around US$1mil from that company.

Bragg said that Collins spent the embezzled funds on a luxurious lifestyle that included fine dining and “extensive travel”, including more than 150 plane tickets.

He purchased the engagement ring from a boutique jewelry store using an account associated with one of his consulting firms, prosecutors said.

“Our former employee committed a crime against CFA Institute, and we thank the Manhattan District Attorney’s Office for pursuing justice in this matter,” the institute said in a statement on Monday.

“In the years preceding and since the incident, we have significantly strengthened our financial and internal controls to help protect our organisation against potential future misconduct.”

The three-level test to become a CFA holder is offered several times a year and is seen as leading to new job opportunities and higher salaries in the financial sector.

More than 24,000 candidates sat for the Level I CFA exam in February, which was administered at hundreds of proctored, computer-based testing centers around the world.

It takes three to four years to complete all levels of the CFA programme and become a charterholder, based on a study time of 300 hours per level, and costs US$3,520 to US$4,600.

Of those who have taken the final level of the exam, an average of 51% have passed over the last decade.

The incident was seized upon by critics of the CFA Institute.