INDIANAPOLIS — A New Palestine man has been accused of stealing more than $1 million in an investment fraud scheme, the U.S. Attorney’s Office for the Southern District of Indiana announced Thursday, Sept. 17.
Bruce Wayne Ford was charged with 11 counts of securities fraud, wire fraud and money laundering. According to an investigation by the FBI, the Indiana Secretary of State’s Office, and the Greenfield Police Department, he worked to persuade clients to invest their money with him, often promising that his investment instruments would outperform the stock market. When they signed over investments such as 401(k) rollovers, the investigation found, Ford would transfer their money into accounts for his personal use.
“The financial investors in this case placed their hard-earned money into the hands of someone whom they thought they could trust, oftentimes the majority of their life savings,” said Josh Minkler, U.S. attorney for the Southern District of Indiana, in a news release. “Instead, the victims’ money fell into the hands of a thief who cares about no one but himself and his interests.”
Ford was arrested on Sept. 11 and made his first appearance at the federal courthouse in Indianapolis on Wednesday, Sept. 16.
An affidavit prepared by an FBI agent investigating Ford detailed the experiences of five victims who invested substantial sums with Ford. He set up instruments called Self-Directed Individual Retirement Accounts and then convinced his clients he was managing the accounts for them. Instead, the affidavit states, he would write false promissory notes from clients to withdraw funds that would eventually make their way into accounts he controlled.
Ford is also charged with committing money laundering to cover up the fraud.
The victims met Ford in a variety of ways. One was his hair stylist; another one’s daughter babysat his children; others attended a seminar on investing put on by Ford. All agreed to invest thousands of dollars with him. One victim turned over $335,000 for him to invest.
Over time, if the investors attempted to make a withdrawal from the accounts, Ford evaded the issue, in one case offering to give a loan to the client instead. The investigation showed he sometimes withdrew money from one victim’s account to pay another one.
The scheme allowed him to obtain about $1.2 million from 2013 to 2018, the affidavit states.
The investigation noted that Ford spent his clients’ money on a down payment for a house in New Palestine, credit card payments and home improvement materials, among other expenses.
Ford was licensed as an insurance agent between 2008 and 2018. In 2012, Ford incorporated a business called Ford Investment and Financial Services in Greenfield. He used the business to promote investment services, mostly to his current and former insurance clients, the affidavit states — but neither he nor the business were registered to provide financial advising services.
Ford opened another business with a Greenfield address, COFFE Trusted Advisers, in 2015.
To sell securities, a person must be registered with either the Securities and Exchange Commission or the Indiana Securities Commission, which must also register securities themselves. Ford, according to the affidavit, did none of that.
Because Ford was not registered to sell securities, Indiana Secretary of State Connie Lawson said in the news release, investors could have avoided losing their money if they had checked his credentials.
“I encourage everyone to check their investor’s registration prior to exchanging any money. It’s a simple safeguard that could protect your retirement nest egg,” she said.
If Ford is found guilty, he could face up to 25 years in prison.
“Investment fraud schemes ultimately lead to the loss of innocent victims’ hard-earned money. The victims expected the defendant to protect their future, not use their money to fund his personal lifestyle,” Paul Keenan, FBI special agent in charge of the investigation, said in the news release. “The FBI will continue to work closely with our partner agencies to investigate these types of crime and ensure criminal activity is identified, investigated, and disrupted.”