Financial advisor accused of bilking clients, including trust for child and elderly man
In this time of fiscal frugality, here comes a financial advisor who federal authorities say bilked "vulnerable clients" out of more than $838,000. An indictment says the suspect stole from a trust for a child with birth defects and from an 85-year-old with dementia.
Ralph Edward Thomas Jr., 52, was charged with mail fraud. The licensed insurer, between 2000 and 2004, was vice president of Harbor Financial, a subsidiary of Harbor Bank that did financial planning and sold insurance. He worked for Well Fargo Advisors from 2004 through 2010, authorities say.
The details are below from a statement from the Maryland U.S. Attorney's Office:
The indictment alleges that in December 2001, Thomas met KL, the trustee of a $3 million settlement received on behalf of her daughter, who suffered birth injuries, and persuaded KL to move the trust account to Harbor Bank. Each month, the annuity paid funds directly into the Harbor Bank trust account.
The indictment alleges that Thomas stole approximately $756,963.98 from the trust account for KL’s daughter by withdrawing money from the Harbor Bank trust account and purchasing cashier’s checks which he deposited into his personal bank accounts. Thomas allegedly used the funds to pay his personal credit card accounts and other personal expenses. The indictment alleges that on July 29, 2009, Thomas used $100,000 stolen from the Harbor Bank trust account to purchase a home in Reisterstown, Maryland.
The indictment further alleges that between June 2006 and May 2009, Thomas initiated three mortgages in the name of KL on her personal residence, without her permission, forging her name on mortgage documents and other paper work. The proceeds of the mortgages were deposited into the Harbor Bank account and were allegedly withdrawn by Thomas who diverted the funds to his personal use. KL incurred $26,886.36 in losses and expenses as a result of these three mortgages.
In addition, according to the indictment, in January 2006, Thomas became the financial advisor for LM, a retired Baltimore resident who oversaw the disbursements from an annuity that was shared by LM and her sister, an 85 year old who suffered from dementia. LM allowed Thomas to manage the money in the annuity. The indictment alleges that Thomas withdrew $75,000 from LM’s account and used $42,000 of those funds for his personal benefit, including purchasing cashier’s checks made payable to credit card companies where Thomas held accounts.
The indictment seeks the forfeiture of the proceeds of Thomas’ scheme in the amount of $838,350.04, including investment accounts owned by Thomas, the home in Reisterstown, and luxury automobiles.
Thomas faces a maximum sentence of 20 years in prison and a $250,000 fine for mail fraud. No court appearance has been scheduled yet.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the FBI and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Gregory R. Bockin, who is prosecuting the case.
The indictment alleges that Thomas stole approximately $756,963.98 from the trust account for KL’s daughter by withdrawing money from the Harbor Bank trust account and purchasing cashier’s checks which he deposited into his personal bank accounts. Thomas allegedly used the funds to pay his personal credit card accounts and other personal expenses. The indictment alleges that on July 29, 2009, Thomas used $100,000 stolen from the Harbor Bank trust account to purchase a home in Reisterstown, Maryland.
The indictment further alleges that between June 2006 and May 2009, Thomas initiated three mortgages in the name of KL on her personal residence, without her permission, forging her name on mortgage documents and other paper work. The proceeds of the mortgages were deposited into the Harbor Bank account and were allegedly withdrawn by Thomas who diverted the funds to his personal use. KL incurred $26,886.36 in losses and expenses as a result of these three mortgages.
In addition, according to the indictment, in January 2006, Thomas became the financial advisor for LM, a retired Baltimore resident who oversaw the disbursements from an annuity that was shared by LM and her sister, an 85 year old who suffered from dementia. LM allowed Thomas to manage the money in the annuity. The indictment alleges that Thomas withdrew $75,000 from LM’s account and used $42,000 of those funds for his personal benefit, including purchasing cashier’s checks made payable to credit card companies where Thomas held accounts.
The indictment seeks the forfeiture of the proceeds of Thomas’ scheme in the amount of $838,350.04, including investment accounts owned by Thomas, the home in Reisterstown, and luxury automobiles.
Thomas faces a maximum sentence of 20 years in prison and a $250,000 fine for mail fraud. No court appearance has been scheduled yet.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the FBI and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Gregory R. Bockin, who is prosecuting the case.
Posted by Peter Hermann at 7:13 AM | Permalink
| Comments (2)
Categories: Baltimore County, Courts and the justice system
Categories: Baltimore County, Courts and the justice system
Comments
so this guy is going to spend time relaxing in white-collar prison after stealing from these victims ... is KL going to get any restitution?
Posted by: outraged | August 17, 2011 7:43 AM
Turd. Again and again some very profitable criminals never display weapons.
Posted by: ruth | August 17, 2011 8:24 AM