FRAUD STOPPERS
Secretary of State's office protects investors in 2014
Don’t be a victim of investment fraud.
Find out ways to protect yourself here in.gov/sos
2014 was a busy year for the Indiana Secretary of State’s Securities Division. The Division worked tirelessly to investigate and prosecute investment fraud perpetrators. The Prosecutors’ Assistance Unit worked alongside local, state and federal law enforcement, the United State District Attorney’s office and county prosecutors to make sure these fraudsters were brought to justice.
Here is a rundown of some of the arrests made and convictions received in 2014.
Jerry Smith, Franklin County
Charges: Five Class C felonies for sale of unregistered securities
Sentenced: 20 years in prison, 20 years probation and $410,189
Method: Ponzi scheme totaling to more than $4 million in losses
Lynn Simon, Vanderburgh County
Charges: Class C felony securities charge, a Class C felony for sale of
unregistered securities and 2 Class B felonies for committing
securities frauds to victims over age 60.
Sentenced: Pled guilty in August. 2 years in prison, 8 years work release, $1.4
million in restitution
Method: Ponzi scheme. Simon solicited clients through his company
Financial Security and then used their money for personal gain.
Kevin James, Marion County (Federal case, US District Court, Southern District of Indiana)
Charges: Stole $1.4 million from 30 investors. Charged with mail fraud,
securities fraud and money laundering.
Sentenced: 10 years in prison, $1.3 million in restitution
Method: Sold annuities and offered to reinvest current annuities for his
insurance clients through a fictitious fund called the Financial
Security Program.
Rudolf “Rudi” Pameijer, Johnson County
Charges:
violations.
Sentenced:
suspended with 10 years to be served in prison.
Method: Ponzi scheme