Monday, February 25, 2008

Indiana Man Convicted of Swindling Seniors

Jason Keigley, Indianapolis, Indiana, has been found guilty in Hendricks County Superior Court of swindling money from seniors through a fraudulent investment and mortgage scheme.

Keigley was convicted of the following charges: the offer or sale of an unregistered security, transacting business as an unregistered Broker Dealer, and fraud in connection with the offer or sale of a security, all class C felonies. Keigley was also found guilty of loan broker fraud, a class D felony.

Indiana Secretary of State Todd Rokita and Hendricks County Prosecutor Patricia Baldwin joined forces to file criminal charges and pursue prosecution of Keigley for violations of the Indiana Securities Act and Indiana Loan Broker Act. Charles Williams of Rokita’s Prosecution Assistance Unit and Hendricks County Deputy Prosecutors Rhett Stuard conducted the investigation. Tyler Starkey presented the State’s case at trial. A jury found Keigley guilty on all four counts.

Keigley worked as a loan originator for an Indiana mortgage company in 2004, and during his employment, he also operated his own business, 1st Place Mortgage. The Secretary of State’s office found that Keigley convinced a Hendricks County couple to invest in his company which, unbeknownst to them, was an unregistered security. He also told them their investment was in an interest-bearing account, available to them upon request, while at the same time establishing a reverse mortgage for the couple. Some time after Keigley brokered the reverse mortgage loan and the couple had bought Keigley‘s investment, the couple requested their investment funds and only a small portion was returned.

No account has ever been located and Keigley could not account for any of the missing funds. In addition, the victims were hit with foreclosure on their home as a result of Keigley‘s failure to fulfill the obligations of the reverse mortgage. Investigator Charles Williams was able to save the couple’s home from foreclosure through his investigative efforts.

Sentencing was initially set by the Court for March 17. Keigley faces a maximum sentence of eight to 13 years for all charges.

“Hoosiers simply will not tolerate mortgage fraud in our state,” Rokita said. ”Indiana can reverse the ill effects of mortgage fraud by educating and protecting home buyers from this type of damaging, criminal activity. Every home buyer has a duty to do their homework, and my office provides a variety of valuable investment and mortgage information resources.”

Prosecutor Baldwin agreed with Rokita and echoed his sentiments.

“In Hendricks County, we take it seriously when unscrupulous people attempt to defraud innocent citizens, and we will continue to vigorously prosecute those cases,” Baldwin said.

“Our Securities division is charged with protecting investors,” said Chris Naylor, Indiana’s Securities Commissioner. “We believe a two tiered approach can help prevent future cases of fraud. Educating Hoosiers about prudent investing and mortgage practices coupled with bringing enforcement actions and criminal prosecutions against companies and individuals engaged in fraud are powerful tools to protect our citizens. This will ultimately restore consumer confidence and promote business development.”

The Secretary of State’s Prosecution Assistance Unit (PAU) initiated this investigation and worked with Prosecutor Baldwin to file charges and prosecute Keigley. Rokita created the PAU in 2004 to facilitate local law enforcement’s prosecution of alleged Securities Act and Loan Broker Act violations by creating a stronger partnership between the Statehouse and county courthouses. Since its inception, the PAU has helped law enforcement throughout the state file charges in 27 high-profile investment fraud cases, earning a 26 to 1 conviction-to-dismissal record and obtaining more than 200 years of sentenced jail time for white collar criminals.

mortgage fraud