Floyd Co. prosecutors charge 15 people in alleged securities fra - WDRB 41 Louisville News

Floyd Co. prosecutors charge 15 people in alleged securities fraud scheme

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NEW ALBANY, Ind. (WDRB) -- Floyd County prosecutor Keith Henderson says his office has filed charges against 15 suspects in what is being called a multi-state securities fraud scheme.

During a press conference Monday morning, Henderson told the media that 15 suspects are facing a total of 32 charges, including 11 counts of corrupt business influence and 21 counts of securities fraud.

Henderson says the investigation began about three-and-a-half years ago, and that investors were told their money would go to oil wells. Instead, the suspects used the investors' money for personal use -- and many of the victims, who were elderly, lost their life savings. 

Now 15 people have been charged. The 15 suspects, some of whom at one time worked from an office set up in New Albany, face corrupt business influence and securities fraud charges. 

However, Henderson says the case is widespread, spanning as many as nine states, including Kentucky, with dozens of additional victims. 

"Part of the method of operation was making cold calls to people out of the New Albany office. Part of it is convincing them to turn their money over for fraudulent investment," said Henderson. There were bookkeepers, accountants, and then others who would close the deals and get the money. 

"Part of this scheme was open and close companies, and open and close companies, and keep moving the money," Henderson added.

Many of the victims were elderly and lost their life savings.

"A lot of these people, this is their life savings," Henderson said. "This is life shattering for these people."

Prosecutors say the southern Indiana cases involve about $750,000, but that, nationally, the scheme involves millions of dollars and dozens of additional victims. 

"Many of them understand, that they're not going to see this money. this is about holding people accountable for what they've done," said Henderson.

Federal charges could also be filed.

"We look forward to holding these 15 people accountable as charged," Henderson said.

Indiana Securities Commissioner Carol Mihalik urges Indiana residents who think they have been cheated to call the fraud hotline at 800-223-8791.

One of the suspects has been in the news before. David Rose pleaded guilty to 22 charges in a 2009 investment fraud case. He got out of prison in 2013.

Those charged include: 

  • Brent A. Loveall of Louisville, Kentucky
  • Bruce J. Fox of Louisville, Kentucky
  • Robert S. McGregor III of Bowling Green, Kentucky
  • Keith L. Mohney of New Albany, Indiana
  • Mandy E. Ward (a.k.a. Mandy E. Ward-Rose) of Louisville, Kentucky
  • Colin P. Purcell of Louisville, Kentucky 
  • Michael Wood of Fisherville, Kentucky
  • David C. Brown of Bowling Green, Kentucky 
  • Jeffrey B. Smith of Bowling Green, Kentucky
  • Thomas J. Berry of Alvaton, Kentucky 
  • Jason W. Towe of Galatin, Tennessee 
  • Brian C. Rose of Salem, Virginia
  • David G. Rose of Louisville, Kentucky
  • Hubert F. Sackett of Anderson, South Carolina
  • Richard E. Collins of Charlestown, Indiana

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