A Wilmington, Mass., investment advisor was sentenced to three and a half years in federal prison and ordered to pay $1.89 million in restitution for stealing retirement money from more than a dozen elderly people, the Securities and Exchange Commission announced Wednesday.

The sentencing of Gregg D. Caplitz, who was convicted by a federal jury in Massachusetts of conspiracy, investment advisor fraud, wire fraud and a tax-related charge, took place in Federal District Court in Boston Tuesday.

Caplitz fraudulently induced clients to entrust their savings and other funds to him by falsely representing that the funds would be invested and managed for the clients' benefit. He told some he could get $1,000 a month return on a $275,000 investment.

In the case of one client who refused to invest in the scheme, Caplitz got control of the client’s retirement money and transferred it to his company, Insight Onsite Strategic Management, without the client’s authority, the SEC complaint says.

Some of the money was used to benefit Rosalind Herman, who worked with Caplitz, and her two sons, Brad and Brian Herman, and her daughter-in-law Charlene Herman, the SEC says.

The investigation against Caplitz and the Hermans is continuing. The SEC is seeking a permanent injunction to bar them from the financial industry, plus disgorgement, prejudgment interest, and a penalty against Caplitz and Insight Onsite Strategic Management, and disgorgement plus prejudgment interest against the Hermans and Knew Finance Experts, a company where some of the money was transferred.