Former Carmel businessman Thomas Redmond Jr. pled guilty and was sentenced July 18 for defrauding 10 victims, nine of whom were elderly, out of more than $580,000
Redmond pled guilty as charged to eight counts of securities fraud, a Class B felony, and two counts of securities fraud, a Class C felony. He was sentenced to 15 years, 10 years executed, and to pay restitution to the victims. The 10-year executed sentence is to be served as four years in the Indiana Dept. of Correction and six years in a work release program. The case was prosecuted by Marion County Prosecutor Terry Curry’s office following an investigation conducted by Indiana Secretary of State Connie Lawson’s Securities Division.
“It’s unfortunate that, again, we have a professional misusing his position of trust to scam personal acquaintances. We take these crimes seriously, and we continue to seek justice for the victims of white collar crimes such as this,” Curry said. “We appreciate our partnership with the Secretary of State in prosecuting these securities crimes.”
Redmond was a financial advisor who admitted to investigators that he began taking client funds for his own personal use in 2004, often using shared Christian beliefs to secure and maintain the trust of the victims, according to a release from Lawson’s office. He concealed the misappropriation of his clients’ funds by sending them fraudulent statements which purported to show the returns on their investments. He also made payments back to some of his clients, often through funds taken from other victims as is typical in a “Ponzi” scheme, Lawson stated.
“This case is particularly devastating as it involves the most trusting of victims: elderly widows who knew Redmond through church and a pair of missionaries who spent their life’s work overseas counseling survivors of Auschwitz,” Lawson said. “These Hoosiers, who thought they were making sound investments, have lost their life savings. I hope this case will serve as a warning to all Hoosier investors.”
Redmond was permanently barred from selling securities by the Financial Industry Regulatory Authority in 2011, but failed to inform his clients or his employer that his license to sell securities had been revoked and continued to facilitate transactions.
Redmond’s victims may be eligible to receive compensation from the Secretary of State’s Securities Restitution Fund for a portion of their losses. The fund allows victims of financial crimes to recoup up to $15,000 or 25 percent of unrecovered losses, whichever is less. This fund was the first of its kind in the nation and plays an important role in helping Hoosier investors recoup their losses. It is funded through fines and settlements collected from violators of the Indiana Uniform Securities Act.