A former Indianapolis financial adviser who pleaded guilty to stealing $1.4 million from 30 investors was sentenced to 10 years in prison Friday by a federal judge.
Kevin James, charged in April with securities fraud, mail fraud and money laundering, also was ordered to pay more than $1.3 million in restitution by Judge Sarah Evans Barker.
James, who worked as an insurance agent and financial adviser for 30 years, sold annuities and promised to reinvest current annuities for his insurance clients through a fictitious fund called the Financial Security Program. Instead, he used the investment money for personal debt payments, Indianapolis Colts tickets and country club memberships.
“This case is a classic example of a Ponzi scheme,” Secretary of State Connie Lawson said in a written statement. “Preying on personal relationships with his victims, James manipulated the facts and his expertise. He even continued to solicit funds after being served with a federal search warrant in February 2014."
James was caught following a joint investigation by the Secretary of State’s office, Internal Revenue Service and the United States Attorney’s office. The probe was initiated after one of his investors filed a complaint with the Secretary of State’s office.