Indianapolis Adviser Gets 10-Year Sentence

Kevin James, a former Indianapolis financial adviser, was sentenced by a federal judge to 10 years in prison and ordered to pay more than $1.3 million in restitution, after James pleaded guilty to stealing $1.4 million from 30 investors.

In April, James was charged with securities fraud, mail fraud and money laundering.

For 30 years, James worked as an insurance agent and financial adviser. He sold annuities and promised to reinvest current annuities for his insurance clients through a fictitious fund called the Financial Security Program.

But James used the money for personal debt payments, Indianapolis Colts tickets and country club memberships.

In a written statement, Secretary of State Connie Lawson decried James for exploiting the personal relationships developed with his clients, manipulating the facts and his expertise, and continuing to solicit funds after being served with a federal search warrant in February.

James’ downfall began when one of his investors filed a complaint with the secretary of State’s office. This triggered a probe followed by a joint investigation by the Secretary of State’s office, Internal Revenue Service and the United States Attorney’s office.

Starr Austen & Miller has been representing victims of securities fraud, broker fraud, and Ponzi schemes for 33 years. Many of these schemers have relationships with insurance companies or larger brokerage firms that have a duty to supervise and monitor their activities. Such insurers and brokers may be liable for the misdeeds of their crooked agents.

Source: Indianapolis Business Journal