United States Attorney Announces Charges Against Investor Who Defrauded Carmel Victims
Ohio Man Operated a Fictitious Investment Company That Bilked More Than $650,000 from Investors
|U.S. Attorney’s Office February 24, 2014|
INDIANAPOLIS—Joseph H. Hogsett, the United States Attorney, announced today that an Ohio man has been charged with devising a scheme to fraudulently obtain money from investors in order to enrich himself by using his position as an investment adviser broker to solicit investors with promises that money they invested would be used for the purchase of investment and insurance products.
David Bridges, 37, Cincinnati, Ohio, had his initial appearance in court today in front of a federal magistrate judge where he waived indictment and indicated his desire to enter a plea of guilty. The losses incurred by all victims total more than $650,000. Several of the victims of this scheme have been long-time residents of Hamilton County, specifically, Carmel, Indiana.
This matter began in November 2012, when Carmel Police were notified of alleged irregularities. Carmel Police then contacted representatives of the Federal Bureau of Investigation, who have led the investigation since that time.
“The United States Attorney’s Office will aggressively pursue the prosecution of those individuals who bilk Hoosier out of their hard-earned retirement funds through fraud,” said Hogsett. “Stealing the hard-earned money that Hoosiers plan to retire on is inexcusable.”
It is alleged that Bridges created a bogus company, SD Capital LLC, to convince investors to purchase annuity contracts at SD Capital and/or roll over their IRA accounts maintained elsewhere to a purported IRA account managed by SD Capital. It was further part of the alleged scheme that the investors, in reliance on the advice of Bridges, wrote checks to SD Capital for the investment products. Bridges deposited these checks into his own bank account.
It is further alleged Bridges represented to his investors that he had purchased the investment products with their money. However, Bridges instead used all of the money he received for the investment products for his personal benefit, including the payment of personal expenses incurred through gambling and purchases at grocery stores, gas stations, and retail shops in a manner materially contrary to the representations and promises he had made to the investors.
Assistant Special Agent in Charge of the Indianapolis FBI Office Kevin P. Lyons said, “The FBI is dedicated to stopping white collar crime and protecting victims of investment fraud.”
MaryAnn T. Mindrum, who is prosecuting the case for the government, said Bridges could face up to 10 years in prison and a fine of up to 250,000. Bridges remains in the custody of the United States Marshals Service. No future court date has been set.
This case is the result of a collaborative investigation by the FBI and Carmel Police Department.
An Information or Indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.