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Secretary of State

Securities Division > News Archive  > 2003 Press Releases > For Immediate Release: March 27, 2003 Rokita's Office Investigates and Uncovers Alleged Central Indiana Investment Fraud

Contact: Heather Sewell

Rokita's Office Investigates and Uncovers Alleged Central Indiana Investment Fraud
David Shaw case results in criminal charges

Indianapolis, IN  -- Indiana Secretary of State Todd Rokita today applauded the filing of criminal charges against Indianapolis resident David J. Shaw. The criminal charges included eight counts alleging Shaw offered and sold unregistered securities and sold securities in a fraudulent manner. Shaw is a former branch manager with Raymond James & Associates, Inc., a registered securities broker-dealer. Other counts include charges that Shaw committed fraud on a financial institution, corrupt business influences, theft, and forgery.

Shaw's criminal charges are the culmination of an investigation initiated by Rokita's office regarding Shaw's activities at Capital Investments, Inc., an unlicensed investment firm that Shaw operated in addition to his duties as branch manager of the local Raymond James office. The investigation led to evidence of other investment scams. Rokita referred the case to Marion County Prosecutor Carl Brizzi, who under Indiana law has the authority to file criminal charges. The offices continued working together to develop the case, which ultimately resulted in 23 counts of alleged criminal activity.

"This is exactly the type of government effectiveness that Hoosier taxpayers deserve," said Rokita. "From the statehouse to the courthouse, we worked as a team, utilizing all of our specialized resources and expertise to stop a man from hurting more people. As I have continuously said, it's not about duplicating government services; it's about utilizing resources in a coordinated way to effectively bring people to justice. What Mr. Shaw needs now is hard jail time, and we are looking forward to continuing to help Prosecutor Brizzi see that Shaw gets it."

"This is a man who took advantage of the trust that he had built up with these institutions and these investors and stole their money without a hint of regret," said Brizzi. "Shaw was motivated by out-and-out greed and a desire to be a big shot. He didn't even spare his own family in his scheme to get what he wanted. This is an example of the importance we place on the rooting out of white collar criminals. Such people are not pillars of the community but merely common thieves."

"Stealing money from people with a briefcase is no different than stealing it with a knife in my book-- these criminals need to do hard time," Rokita said. "I am very pleased with my staff, including Securities Commissioner Jim Joven and Investigator Rick Neff, for their work on behalf of Hoosiers. Their pursuit of justice in this matter was unwavering."

Rokita further reminded Hoosiers to check out any investment opportunity before investing. Businesses holding themselves out to be corporations should be registered with Rokita's office, as should both investments and their sellers. Information can be verified at Rokita's website or by phone at 317.232.6576 (for corporations) or 1.800.223.8791 (for securities).