Local man faces 20 investment-related felony counts

Back to TopCommentsE-mailPrintBookmark and Share

An Indianapolis man faces 20 felony charges for selling securities to investors as an unregistered broker, Marion County Prosecutor Terry Curry announced Wednesday.

Robert E. Wilson, 54, who operated locally based Wellington Institutional Management LCC, was charged Tuesday in Marion County Court with 10 counts of securities fraud and 10 counts of being an unregistered broker-dealer. Curry said Wilson's clients lost $400,000.

The charges are Class C felonies and each carries a potential punishment of two to eight years in prison.

Curry said an investigation revealed Wilson sold securities to 10 individuals or couples even though he wasn't registered as a broker-dealer with the Indiana Secretary of State’s Office, as required by law.

James A. Klimek, Wilson's Fisher-based attorney, said Wilson would fight the charges.

"The state has been conducting an investigation of this matter for over two years, during which time Mr. Wilson has adamantly maintained his innocence of any violation of Indiana securities law," Klimek said Wednesday night in a written statement. "In their attempt to build a case against Mr. Wilson, the Indiana Securities Division engaged in several serious violations of his rights under the United States Constitution. We will vigorously defend Mr. Wilson against the state's allegations."

Klimek's statement did not explain how Wilson's rights might have been violated.

Wilson was released Wednesday from Marion County Jail on bond.

Wellington Institutional Management, which had an office at 9000 Keystone Crossing, offered two investment funds that were targeted by the Indiana Secretary of State’s Office Securities Division: The Wellington Market Equity Fund LLC and the Palladium Investors Fund LLC. The investigation started as an audit in 2011.

Investigators said minimum investments in the Wellington Market Equity Fund were $50,000. Investors "were told that Wilson’s computer program could perform stock market trades more quickly and more rationally than a stock broker, leading to potentially greater returns on their investment," Curry's office said.

Secretary of State Connie Lawson issued a statement saying Wilson's program was another case of "If it sounds too good to be true, then it probably is."

"Our office was already aware of these high-frequency trading scams made popular on Wall Street similar to the computer software Wilson allegedly promoted," Lawson said. "If one person would have called our office to see if he was registered to sell investments, we would have investigated and could have prevented these devastating losses."

Curry emphasized that potential investors should check with the Secretary of State's online database to make sure investment advisers and products are licensed before investing.


  • Your evidence?
    Heresay, innuendo and belief do constitute facts or truth...
  • Huh
    lib- You need to read the book "behold a pale Horse"...youre so far off from the reservation and reality...do you just take evryones word for everything or have you actually investigated any of your claims. please do, the EPA is a joke. huge misallocation of resources constantly. If you have a problem with the financial crisis, go talk to your democrats and republicans who backed all these wall street banks and continue to do today. Glass Steagle?? oh yeah Democrats banished that. QE, oh yeah Democrats and GOP decided to inflate our currency and steal our purchasing power. Get a grip and quit being a mouthpiece for washington. Everyone has their views, but lying to yourself to increase your self esteem
  • Dear Bill Smith,
    yes, more government oversight is exactly what we need. What do you think caused the financial crises in 2008 (it was lack of oversight due to deruglation and an underfunded SEC)? Financial fraud happens at all levels and all sizes of companies; what would you expect from industry that is primarily self-regulated via the NASD? As for what government does right I would list the following; the interstate highway system, airports and seaports, police, fire, public libraries, national parks, student loans, the EPA (clean water, air and land), the FDA (we have a stable food supply), regulation of the utility industry (no rolling black or brown outs like some countries), public universities, national laboratories, the CDC (no mass outbreaks of disease), Medicaid, Social Security, NASA and the FDIC for starters (I could name more,but I am limited on time). Granted there is room for improvement and things can always be run more efficiently, but they are not as bad as most conservative politicians make it out to be...
  • Chip and Lib - wake up
    Yeah, just what we need.... MORE Government. How about, where were the internal controls and oversight at Wellington. It's amazing, that you rarely, if EVER, hear of these types of stories coming from a Morgan Stanley or UBS. Yes, they have issues other than this, but as far as ROGUE advisors, this always seems to happen with these small, independent RIA firms. Mark Schenker, Tim Durham, Ethan Hauke...all prme examples here locally. You idiots think govt is the answer to every problem...give me one solid example, with the exception of the military, which our government has done anything better than the private sector. Bloated, wasteful, inefficient, incompetent government agencies and employees are not the answer
  • Hoosier Lib
    Agree 1,000 percent. Left to their own "oversight" and "regulation," individual and corporate malfeasance would be through the roof. Makes me laugh every time someone calls for smaller government.
  • Another fine local businessman...
    Yet another prime example of why we need more funding for government employees that investigate and prosecute securitiies fraud.

Post a comment to this story

We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
You are legally responsible for what you post and your anonymity is not guaranteed.
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
Subscribe to IBJ