Prosecutors: Financial advisor defrauded elderly victims
An Indianapolis man faces charges after the Marion County prosecutor says he defrauded elderly victims out of $580,000.
Thomas Redmond, Jr., is accused of orchestrating a financial fraud scheme.
Indiana Secretary of State Connie Lawson, whose Securities Division conducted the investigation, called it "particularly devastating" because Redmond focused on elderly widows he met through church.
Marion County Prosecutor Terry Curry filed charges Monday against Redmond, who faces eight counts of Securities Fraud, a Class B Felony, and two counts of Securities Fraud, a Class C Felony.
"The damage caused by scam artists is permanent and devastating, and this case illustrates again why we must vigorously pursue those who prey upon vulnerable victims," said Prosecutor Curry. "We appreciate our partnership with the Secretary of State in prosecuting these securities crimes."
Lawson said the victims include elderly widows and "a pair of missionaries who spent their life's work overseas counseling survivors of Auschwitz."
They thought they were making sound investments, but instead Lawson said they lost their life savings.
Redmond was a financial advisor who told investigators he started spending client funds for his own personal use in 2004. He allegedly used shared Christian beliefs to secure and maintain the trust of several of his victims.
While Redmond promised clients that he would invest the funds in various securities, he instead deposited the money into his personal account and use it for personal living and business expenses.
Redmond sent his clients fraudulent statements showing returns on their investments, according to prosecutors. But in reality, he was spending their money. In some cases, he made payments back to some clients through funds taken from other victims.
Redmond was permanently barred from selling securities by the Financial Industry Regulatory Authority in 2011, but failed to tell his clients or his employer that his license to sell securities had been revoked and continued to facilitate transactions.