Two Gibson County men arrested for securities fraud related to investments in health care businesses
FOR IMMEDIATE RELEASE
February 4, 2010
Daniel Murry and George Duncan charged with violations of the Indiana Securities Act; bilking investors out of $115,000
(PRINCETON, IN) – The Gibson County Sheriff’s Department arrested Daniel Murry and George Duncan of Princeton today on felony violations of the Indiana Securities Act concerning allegations they stole money people had given them to invest in a pair of health care companies. The arrests come after a joint investigation conducted by Indiana Secretary of State Todd Rokita’s Prosecution Assistance Unit (PAU), the Indiana State Police and the Gibson County Sheriff’s Department. Murry faces seven felony counts while Duncan faces three. Each man is facing up to eight years in prison for each felony count.
“These men allegedly duped their victims by providing written agreements to make the transactions appear legitimate,” said Secretary Rokita. “It is yet another reminder to Hoosiers that every investment opportunity needs to be carefully researched, and my office provides Hoosier voters and taxpayers with the tools to do that.”
According to the probable cause affidavit filed February 2 in the Gibson County Circuit Court by Gibson County Prosecutor Robert Krieg, Murry was the president and secretary of two businesses, Healthcare Information Technology Corporation and HIPPA Resources Management, Inc. Murry and Duncan allegedly solicited money from individuals for the purpose of investing in their health care businesses. A portion of the investors’ funds were then allegedly deposited into Murry’s personal bank account and the victims’ money was never used for investment purposes. The two men allegedly stole a total of $115,000 from five victims. Four of the victims reside in Gibson County.
According to the probable cause affidavit, three of the victims entered into written agreements with Murry and Duncan to invest in either Healthcare Information Technology Corporation or HIPPA Resources Management. Each of the written agreements states that neither company “is in violation of or in default with respect to any applicable law or regulation of any governmental agency.” However, according to the probable cause affidavit, Murry and Duncan were not registered to sell securities in Indiana. In addition, shares of Healthcare Information Technology Corporation and HIPPA Resources Management were not registered as securities in Indiana.
Prosecutor Krieg said that “without the expertise of the Securities Division of the Indiana Secretary of State’s office, it would be very difficult for local prosecutors to bring these types of cases forward.” Krieg stated that “in these tough economic times, it is particularly important that investors, whether they be seniors, small businesspeople or otherwise, have the confidence that their hard-earned monies are protected from fraudulent investment schemes.”
The specific counts against Murry are five counts of securities fraud, one count of acting as an unlicensed broker-dealer and one count of selling an unregistered security. The counts against Duncan are one count of securities fraud, one count of acting as an unlicensed broker dealer, and one count of selling an unregistered security. These are all Class C felonies. PAU attorney Matt Dumas was sworn in as a special deputy prosecutor to assist the Gibson County Prosecutor in this case.
The counts described are allegations. Duncan and Murry are presumed innocent until proven guilty.
For more information on how to avoid becoming a victim of investment fraud, visit www.IndianaInvestmentWatch.com.
About the Prosecution Assistance Unit
In 2004, Indiana Secretary of State Todd Rokita created the Prosecution Assistance Unit within the Securities Division of the Secretary of State’s Office. Its sole purpose is to assist police and prosecutors in investigating and prosecuting criminal violations of the Indiana Securities Act and the Indiana Loan Brokers Act. The investigators and attorneys in the unit collectively have over 72 years of experience in investigating and prosecuting criminals. Since its inception, the Unit has helped to convict 44 criminals in state and federal courts across Indiana in cases that have resulted in over 335 years of time sentenced. In addition, courts have ordered defendants to pay over $29 million in restitution to crime victims.
Media Contact: Jim Gavin, 317.233.8655, firstname.lastname@example.org