Indianapolis resident sentenced for Mortgage and Securities Fraud Scheme
Sentenced to 11 ½ years prison in Indiana Department of Correction
(Danville, IN) - As a result of a partnership between Indiana Secretary of State Todd Rokita’s Prosecution Assistance Unit and Hendricks County Prosecutor Patricia Baldwin, Indianapolis resident Jason Keigley was sentenced on March 14, 2008 to serve 11 ½ years in the Indiana Department of Correction, with no probation, for swindling money from Hoosiers through a fraudulent investment and mortgage scheme.
Indiana Secretary of State Todd Rokita and Hendricks County Prosecutor Patricia Baldwin joined forces to file criminal charges and pursue prosecution of Keigley for violations of the Indiana Securities Act and Indiana Loan Broker Act.
Keigley was previously found guilty of the following charges: the offer or sale of an unregistered security, transacting business as an unregistered Broker Dealer, and fraud in connection with the offer or sale of a security, all class C felonies. Keigley was also found guilty of loan broker fraud, a class D felony.
In the sentencing order, rendered on March 14, 2008, Hendricks County Judge Karen M. Love stated that Keigley showed no remorse for the victims. “Jason Keigley does not believe he has done anything wrong or caused any harm… The Defendant simply does not care that the victims were harmed by his fraudulent activity.”
“Hoosiers simply will not tolerate mortgage fraud in our state,” said Indiana Secretary of State Todd Rokita. “Indiana can reverse the ill effects of mortgage fraud by educating and protecting home buyers from this type of damaging, criminal activity. Every home buyer has a duty to do their homework, and my office provides a variety of valuable investment and mortgage information resources.”
Keigley worked as a loan originator for an Indiana mortgage company in 2004, and during his employment, he also operated his own business, 1st Place Mortgage. The Secretary of State's office found that Keigley convinced a Hendricks County couple to invest in his company, which, unbeknownst to them, was an unregistered security. He also told them their investment was in an interest-bearing account, available to them upon request, while at the same time establishing a reverse mortgage for the couple. Some time after Keigley brokered the reverse mortgage loan and the couple had bought Keigley’s investment, the couple requested their investment funds and only a small portion was returned.
No account has ever been located and Keigley could not account for any of the missing funds. In addition, the victims were hit with foreclosure on their home as a result of Keigley’s failure to fulfill the obligations of the reverse mortgage. Investigator Charles Williams was able to save the couple’s home from foreclosure through his investigative efforts.
“Our Securities division is charged with protecting investors,” said Chris Naylor, Indiana's Securities Commissioner. “We believe a two tiered approach can help prevent future cases of fraud. Educating Hoosiers about prudent investing and mortgage practices coupled with bringing enforcement actions and criminal prosecutions against companies and individuals engaged in fraud are powerful tools to protect our citizens. This will ultimately restore consumer confidence and promote business development.”
The Secretary of State's Prosecution Assistance Unit (PAU) initiated this investigation and worked with Prosecutor Baldwin to file charges and prosecute Keigley. Rokita created the PAU in 2004 to facilitate local law enforcement's prosecution of alleged Securities Act and Loan Broker Act violations by creating a stronger partnership between the Statehouse and county courthouses. Since its inception, the PAU has helped law enforcement throughout the state file charges in 27 high-profile investment fraud cases, earning a 26 to 1 conviction-to-dismissal record and obtaining more than 200 years of sentenced jail time for white-collar criminals.
If you feel you have been the victim of investment fraud of any kind, please contact the Secretary of State's Securities Division at 1-800-223-8791.
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