7/28/2019 07-18-13 Redmond Sentenced in Fraud Scheme

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Media Release:

July 18, 2013

Financial advisor targeting elderly victims draws 15-year sentence Advisor defrauded victims using shared religious beliefs

(Indianapolis, Ind.) Thomas Redmond, Jr., pleaded guilty and was sentenced today for defrauding10 victims, nine of whom were elderly, out of more than $580,000. Redmond pleaded guilty ascharged to eight counts of Securities Fraud (Class B Felony) and two counts of Securities Fraud(Class C Felony). He was sentenced to 15 years, 10 years executed, and to pay restitution to thevictims. The 10-year executed sentence is to be served as four years in the Indiana Department of Correction and six years in a work release program. The case was prosecuted by Marion County

Prosecutor Terry Currys office following an investigation conducted by Indiana Secretary of StateConnie Lawsons Securities Division.

Its unfortunate that, again, we have a professional misusing his position of trust to scam personalacquaintances. We take these crimes seriously, and we continue to seek justice for the victims of white collar crimes such as this, said Prosecutor Curry. We appreciate our partnership with theSecretary of State in prosecuting these securities crimes.

This case is particularly devastating as it involves the most trusting of victims: elderly widows whoknew Redmond through church and a pair of missionaries who spent their lifes work overseascounseling survivors of Auschwitz, said Secretary Lawson. These Hoosiers, who thought they weremaking sound investments, have lost their life savings. I hope this case will serve as a warning to allHoosier investors.

Redmond was a financial advisor who admitted to investigators that he began taking client funds forhis own personal use in 2004, often using shared Christian beliefs to secure and maintain the trustof the victims. He concealed the misappropriation of his clients' funds by sending them fraudulentstatements which purported to show the returns on their investments. He also made payments backto some of his clients, often through funds taken from other victims as is typical in a "Ponzi"scheme.

Redmond was permanently barred from selling securities by the Financial Industry RegulatoryAuthority in 2011, but failed to inform his clients or his employer that his license to sell securitieshad been revoked and continued to facilitate transactions.

Redmonds victims may be eligible to receive compensation from the Secretary of States SecuritiesRestitution Fund for a portion of their losses. The fund allows victims of financial crimes to recoup upto $15,000 or 25 percent of unrecovered losses, whichever is less. This fund was the first of its kindin the nation and plays an important role in helping Hoosier investors recoup their losses. It isfunded through fines and settlements collected from violators of the Indiana Uniform Securities Act.

A charge of a crime is merely an accusation, and the defendant is presumed innocent until and unless proven guilty.

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