Prosecution Assistance Unit
About the Prosecution Assistance Unit
The Prosecution
Assistance Unit was created
within the Enforcement Section
of the Securities Division to
assist law enforcement
agencies in prosecuting
white collar criminals.
Currently the unit includes
two attorneys and two
investigators devoted exclusively
to the enforcement of the
criminal provisions of the
Indiana Securities Act, the
Indiana Loan Broker Act
and related statutes. The
Unit operates under the direction and supervision of the Securities
Commissioner and the
Senior Investigator.
PAU Home page
Updates
On January 17, 2008 , Indiana Secretary of State Todd Rokita’s Securities Prosecution Assistance Unit (PAU) has finished detailing Nelms’ scheme after dedicating over 1000 man-hours to the investigation. They have worked with the Marion County prosecutor’s office to file criminal charges.
New Jersey resident Robert Nelms is the owner and president of Memory Gardens Management Corporation (MGMC), an Indiana corporation that owns and operates cemetery property and funeral homes. In Indiana, the owner of a private cemetery is required by law to provide for the creation and establishment of an irrevocable perpetual care fund. The fund is designed for the purpose of permanently maintaining cemeteries for the benefit of the community and those who purchase lots there.
Nelms used fraudulent securities instruments similar to corporate bonds to transfer the $27 million of cash and assets of the MGMC perpetual care fund. He hid the money through a variety of complex monetary transfers and then used it to pay some of the MGMC purchase price as well as for various personal reasons, such as his large home in Greenwood.
He has been charged with a series of felonies, including fraud-related violations of Indiana's Securities law, theft and conspiracy to commit theft. Currently, Michigan is also reviewing Nelms’ scheme, but no Michigan prosecutor has filed criminal charges.
The specific MGMC properties and funeral homes Nelms raided include:
· Forest Lawn Memory Gardens, Inc. and Forest Lawn Memorial Chapel, Inc., Greenwood
· Covington Memorial Gardens, Inc. and Covington Memorial Funeral Home, Inc., Fort Wayne
· Chapel Hill Associates, Inc. and Chapel Hill Funeral Home, Inc., Osceola
· Lincoln Memory Gardens, Inc., Boone County
· Gardens of Memory, Muncie
· Gill Funeral Home, Inc., Washington
On December 19, 2007, Thomas and Marietta Squibb of Mishawaka received federal prison sentences in an investment scheme that robbed nearly 200 investors of approximately $11.5 million dollars. The PAU first received a complaint against the Squibbs in January 2006 and began its investigation at that time. Our investigators allotted over 1,000 hours questioning and analyzing the couple’s business dealings. As a result of the collaboration between my office, the FBI, U.S. Attorney for the Northern District of Indiana at the time of filing Joseph Van Bokkelen, as well as the current U.S. Attorney for the Northern District of Indiana David Capp, and Assistant U.S. Attorney Jesse M. Barret, Thomas Squibb received 17 1/2 years and his wife Marietta Squibb was sentenced to eight years in prison for their involvement with mail and wire fraud schemes.
For over ten years, the Squibbs conspired to solicit investments promising to develop campgrounds in Michigan and condominiums in Florida. The monies that the couple collected were never invested in any projects as they had promised their investors.
On December 17, 2007, the PAU, working with Elkhart County Prosecutor Curtis Hill, Jr. and Trooper Detectives Alan Lowrance and Lamar Helmuth of the Indiana State Police, conducted an investigation which led to the arrests of brothers Bryan Darrell Oliphant and Brett M. Oliphant pursuant to Elkhart County arrest warrants.
The Oliphants are accused of the fraudulent sale of unregistered securities and of wrongfully receiving more than $1,215,000 from the sale of unregistered securities. The arrest of Bryan Darrell Oliphant was executed by the St. Joseph County Sheriff’s Department. Brett M. Oliphant was arrested in California by the Napa Police Department. Trial dates will be set by the Elkhart County Superior Court No. 2.
The eleven (11) Class C Felony counts filed against Bryan Darrell Oliphant include the following offenses: eight (8) counts of Offer or Sale of an Unregistered Security and three (3) counts of Fraud in Connection with the Offer or Sale of an Unregistered Security. The four (4) Class C Felony counts filed against Brett M. Oliphant include the following offenses: Offer of Sale of an Unregistered Security; Transacting Business by an Unregistered Broker-Dealer or Agent; Fraudulent or Deceitful Acts with the Offer, Sale, or Purchase of a Security; and Conspiracy to Commit Fraudulent or Deceitful Acts with the Offer, Sale or Purchase of a Security. The criminal charges filed against the defendants are merely accusations, and the defendants are presumed innocent until and unless proven guilty.
On November 7, 2007, teamwork among Morgan County Prosecutor Steven Sonnega’s office, the Indiana State Police, the Morgan County Sheriff’s Department, the Martinsville Police Department and Indiana Secretary of State Todd Rokita’s Prosecution Assistance Unit (PAU) culminated in this week’s sentencing of Bill Nardini for securities fraud.
Following an investigation that began in March of this year, Morgan County resident Bill Nardini plead guilty to two counts of Fraudulent Sale of Securities, Class C Felonies. After Chief Deputy Prosecuting Attorney Bob Cline presented the state’s arguments at the conclusion of the sentencing hearing, the court sentenced Nardini to 16 years in prison with no time suspended.
Nardini represented to investors that he was a financial adviser, and he offered opportunities for investors to participate in options trading contract investments. Nardini’s propositions and guarantees of return for investors were complete frauds. Nardini was not registered to sell securities, and Nardini’s investment products were also not registered. Throughout the scam, Nardini pocketed in excess of $170,000 from investors.
On September 6, 2007 Charles Davis, Jr. was sentenced in Elkhart Superior Court III. Pursuant to a plea agreement, Charles Davis, Jr. had previously pled guilty to two (2) offenses: Offer or Sale of an Unregistered Security, Class C Felony; and Transacting Business by an Unregistered Broker-Dealer or Agent, Class C Felony. Davis’ Plea Hearing occurred on October 3, 2006. The reason for the long delay between the Plea Hearing and the Sentencing Hearing was to allow Davis an opportunity to make payments toward restitution to the victims. Davis made no payments whatsoever.
Judge George W. Biddlecome ordered Davis to serve a four (4) year sentence at the Indiana Department of Corrections on each of the two (2) offenses. The Judge did not suspend any portion of the sentences, meaning that Davis will serve all of the time in prison, with no probation. The sentences on the two (2) offenses will run concurrently, meaning that Davis’ total time to serve at the Indiana Department of Corrections will be four (4) years. The Judge ordered Davis to pay $92,500.00 in restitution to the victims.
On August 1, 2007, Indiana Secretary of State Todd Rokita’s Prosecution Assistance Unit (PAU), working with LaPorte County Prosecutor Robert Beckman and the LaPorte County Sheriff’s Department, conducted an investigation which led to the arrest of Elaine Netolicky pursuant to a LaPorte County arrest warrant. Netolicky is a Hamilton County resident accused of selling more than $85,000 in unregistered securities to a LaPorte County couple. Following her arrest, which was executed by the Hamilton County Sheriff’s Department and the Indiana State Police, Netolicky is expected to appear at an Initial Hearing next week in LaPorte, where she will be informed of the 15 Class C Felony counts that were filed by the LaPorte County Prosecutor’s Office. The 15 Class C Felony counts filed against Netolicky include the following offenses: Offer or Sale of Unregistered Securities; Transacting Business by an Unregistered Broker-Dealer or Agent; and Fraud in Connection with the Offer, Sale, or Purchase of a Security. The criminal charges filed against the defendant, Elaine Netolicky, are merely accusations, and the defendant is presumed innocent until and unless proven guilty.
On May 10, 2007, teamwork between Indiana Secretary of State Todd Rokita's Prosecution Assistance Unit (PAU) and Lake County Prosecutor Bernard Carter's office resulted in sentencing of Elbert Elliot for securities fraud.Following an investigation that began more than two years ago, Lake County resident Elbert Elliot plead guilty to 8 counts of Class D Felony theft and was sentenced to 15 years in prison, with 5 years to serve and 10 years probation. Elliot was also ordered to pay more than $500,000 in restitution to his victims.
On May 4, 2007,
Indiana Secretary of State Todd Rokita's Prosecution Assistance Unit, working in conjunction with the Carmel Police Department, filed an administrative action and cease and desist order on Tuesday against Ella Elaine Netolicky, of Carmel, and The Investment Group (“TIG”) for selling unregistered securities in the State of Indiana. The case was brought to the attention of Rokita and the Prosecution Assistance Unit by the LaPorte County Sheriff's office.
Currently, there are 13 known victims in Indiana (residing in Hamilton, Johnson, LaPorte, and Marion counties), and 1 victim in Illinois, with an initial amount of invested money totaling at least $663,577.00. Elements of the investigation suggest that our office may not have a complete list of victims affected by Elaine Netolicky and TIG. If you feel that you may have been a victim of Netolicky or TIG, please contact Secretary Rokita's Fraud Hotline at 1-800-223-8791.
On April 26, 2007, Indiana Secretary of State Todd Rokita joined Hendricks County Prosecutor Patricia Baldwin to announce the filing of criminal charges against Jason Keigley – an Indiana resident accused of swindling more than $1 million through fraudulent investment and mortgage schemes, primarily in Hendricks County. In total, 3 counts for Class C Felonies and 9 counts for Class D felonies have been filed for theft, violations of the Indiana Securities Act, and violations of the Indiana Loan Broker Act.
On April 10, 2007, Indiana Secretary of State Todd Rokita announced that his Securities Division enforcement staff is taking action against Terre Haute-based Extreme Investments, Inc., Hoosier Title Incorporated, and two real estate buyers for falsifying information on 23 mortgage loan applications for properties totaling more than $1.4 million. The administrative complaint served indicated that buyers Rick Burnett and Kris Sommerville may have falsified information on loans for multiple investment properties in the Terre Haute area, by indicating that the properties would be used as primary residences. Extreme Investments of Terre Haute, Inc. d/b/a Affordable Lending of Terre Haute served as the loan broker, and Hoosier Title Incorporated served as the closing settlement agent in all 23 loan closings.
On March 1, 2007, teamwork between Indiana Secretary of State Todd Rokita's Prosecution Assistance Unit (PAU) and the Lake County Prosecutor Bernard Carter's office resulted in a criminal plea agreement today to the Lake County Superior Court. Following an investigation that began more than two years ago, Lake County resident Elbert Elliot plead guilty to 8 counts of Class D Felony theft and was sentenced to 15 years in prison, with 5 years to serve and 10 years probation. Elliot was also ordered to pay $538,176.40 in restitution to his victims. His prison term will begin in May, 2007.
On Monday, January 22, 2007, Robert D. Mildenhall a\k\a Robert Meldenhall, while in Tennessee, plead guilty to multiple counts of theft, securities fraud and the solicitation of murder. In exchange, Mildenhall was sentenced to 40 years in a Tennessee state prison.
Mr. Mildenhall still faces 22 securities charges in Indiana for fraudulently selling stock to two senior citizens; one now deceased, in Vanderburgh County, totaling more than $1.7 million.
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