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Secretary of State

Securities Division > News Archive  > 2008 Press Releases > For Immediate Release: July 24, 2008 Marion County Man Arrested on 36 Felony Counts in Ponzi Scheme

Contact: Jim Gavin
317-233-8655
Media@sos.in.gov

 

Phillip Moore faces securities violations for offering bogus investments

Indianapolis, IN (July 24, 2008) - Indianapolis Metropolitan Police arrested Phillip Moore today on 36 separate felony counts involving violations of Indiana's Securities Act. The arrest comes after an investigation conducted by Indiana Secretary of State Todd Rokita's Prosecution Assistance Unit, along with the office of Marion County Prosecutor Carl Brizzi. If convicted, Moore could spend up to eight years in prison on each felony charge.

The charges allege that Moore convinced his victims to invest $150,000 by guaranteeing high rates of return over short periods of time. Moore outlined the terms of the deals, including repayment interest, through promissory notes that were unregistered as required by law. When the notes came due, Moore either did not pay as promised or wrote checks to the victims that were later returned for having insufficient funds.

"This case should serve as a warning to Hoosiers that get-rich-quick schemes may look and sound appealing, but are rarely more than crimes," said Secretary Rokita. "The State of Indiana takes allegations of securities fraud very seriously because of the tremendous financial damage they can inflict on unsuspecting Hoosiers."

Specific charges against Moore include 12 counts of Fraudulent or Deceitful Acts with the Offer, Sale or Purchase of a Security, 12 counts of Offer or Sale of an Unregistered Security and 12 counts of Transacting Business as an Unregistered Broker-Dealer or Agent - all Class C felonies.

"My office is dedicated to teaming up with Prosecutor Brizzi and other agencies to aggressively root out these financial crimes," said Secretary Rokita. "Promises of great returns on investment need to be looked at very carefully. Hoosiers offered these deals should call my office to find out if the person making the offer is registered and if the promissory note is legitimate."

The Indiana Secretary of State Securities Division can be reached at  (317) 232-6681  or  (800) 223-8791 . For more information on how to avoid becoming a victim of investment fraud, visit www.IndianaInvestmentWatch.com.

The charges described are merely an accusation. The defendant is presumed innocent until and unless proven guilty.

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 38 criminals in state and federal courts across Indiana. In addition, courts have ordered defendants to pay over $29 million in restitution to crime victims. The Unit operates under the direction and supervision of the Securities Commissioner and the Senior Investigator.

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