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Secretary of State

Securities Division > News Archive  > 2007 Press Releases > For Immediate Release: May 4, 2007 Rokita Takes Action against Carmel Scam Artist

Contact: Bethany Derringer
317-233-3985
Media@sos.in.gov

 

Indianapolis, IN - 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.

“With a pen and paper, we believe that Elaine Netolicky swindled more than $663,000.00 from unsuspecting investors,” said Rokita.  “We will not allow scam artists to prey on Hoosier investors and deprive them of their hard earned savings.”

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. 

Case files show that Netolicky attracted her investors by holding garage sales at her residence. When garage sale attendees expressed an interest in her belongings, Netolicky would tell them that she ran an interior decorating business, and the belongings that were in her house could be ordered for them to purchase.

Netolicky would also tell those who ordered a product about a “select group of investors” that she belonged to, and would ask them if they would like to join.  Netolicky promised them high rates of return on their investments - returns many of the investors did not see.

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.

Rokita created the Prosecution Assistance Unit in 2004 to facilitate local law enforcement's prosecution of alleged Securities Act violations by creating a stronger partnership between the Statehouse and county courthouses. Since its inception, the PAU has helped law enforcement throughout the state file charges in 27 high-profile investment fraud cases, earned a 19 to 1 conviction-to-dismissal record, and obtained more than 175 years of sentenced jail time for white collar criminals.

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