Indiana Women Accused of Online Investment Fraud

An Indianapolis woman has been sentenced to four years in prison after she was convicted of defrauding investors in an Internet business venture.

Sixty-seven-year-old Wanda Robertson pleaded guilty to securities fraud charges this week in a Johnson County court. She also was ordered to repay the victims a total of $170,000.

Authorities say Robertson solicited investors through the Web site Craigslist for a scheme where they would be paid for use of their credit histories to obtain loans for her business.

The charges resulted from an investigation by state police and the Indiana secretary of state’s office.

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First Indiana Bank’s Alleged Connection To Accused Indiana Ponzi Schemer Timothy Durham

As I’ve said before, it’s nearly impossible to pull off a Ponzi scheme of any magnitude without the complicity of a seemingly respectable financial services firm.  Bank of America, VISA, Fiserv and MF Global all figure prominently into Ponzi schemes my office is investigating or pursing litigation against.  The former First National Bank of Indiana (FNBI) is yet another firm that appears worthy of some investigation.

According to a federal complaint of forfeiture alleging misdeeds by Timothy Durham, the Indiana businessman and his associates operated at least two holding companies and 19 operating subsidiaries, with approximately 77 individual bank accounts for these entities.  Most of these bank accounts were at JP Morgan Chase and Key Bank and the complaint alleges more than 6,400 FEDWIRE transactions were made between the companies under Durham’s control.

One of these companies was “Fair Financial,” an Akron-based company that apparently was ground zero for Durham’s Ponzi scheme.  “Fair Financial” peddled so-called “investment certificates” supposedly backed by low-risk, high yield, short-term consumer debts ;  in fact, the complaint says money provided by Durham’s victims was used to make interest and redemption payments to earlier investors.  The complaint alleges that unaudited financial statements for “Fair Financial” showed total assets of approximately $241 million, with loans to Durham and his various businesses totaling approximately $192 million.  The unaudited financial statements show a net operating loss for 2008 of approximately $1.7 million and net income of $129,845 for the first six months of 2009.

Full Post Available from NY Securities Attorney: First Indiana Bank’s Alleged Connection To Accused Indiana Ponzi Schemer Timothy Durham

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SEC Settles Insider Trading Charges Involving First Indiana Corp. Stock

The SEC today settled charges against Nancy Jewell, Kristin Mays, and Matthew B. Murphy, III, alleging that the defendants violated Section 10(b) of the Securities Exchange Act of 1934 (Exchange Act) and Rule 10b-5 thereunder by buying First Indiana Corporation (First Indiana) common stock on the basis of material nonpublic information ahead of a public announcement that First Indiana had entered into a merger agreement.

The Commission’s complaint alleges that on July 6, 2007, a member of First Indiana’s Board of Directors received a phone call advising him of a special Board meeting scheduled for Sunday, July 8, 2007. The Director had a longstanding relationship and a history of sharing confidences with each of the defendants. The complaint further alleges that the Director complained to each of the defendants that he was upset that a special First Indiana Board meeting was taking place on Sunday and ruining his scheduled plans for that day. The complaint alleges that the defendants then each misappropriated that information from the Director by purchasing First Indiana common stock that same day on the basis of the information. Before the start of trading on July 9, 2007, First Indiana announced that it had agreed to be acquired by Marshall & Ilsley Corporation at a price per share that represented a 42% premium over the Friday, July 6, closing price for First Indiana common stock.

Pursuant to the proposed settlements, Jewell would pay disgorgement of $8,888, with prejudgment interest of $943.56, and a civil penalty of $8,888; Mays would pay $7,960, with prejudgment interest of $845.03, and civil penalty of $7,960; and Murphy would pay $9,078, with prejudgment interest of $963.72, and a civil penalty of $9,078. The proposed settlements are subject to the approval of the District Court.

Source: SEC Settles Insider Trading Charges Involving First Indiana Corp. Stock

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