A Greenwood man has been indicted on 19 criminal charges related to his alleged involvement in three separate fraud schemes, including a $14 million fraud case against his employer.
Daniel R. Fruits, 46, is facing 10 counts of wire fraud and six counts of money laundering related to a scheme involving Greenwood-based trucking company Secure Transit LLC. He also is facing two counts of making false statements to a federally insured bank related to an attempt at mortgage fraud and one count of mail fraud related to a vehicle title-washing scheme.
The indictment against Fruits was unsealed Dec. 11 and the U.S. Attorney’s Office for the Southern District of Indiana announced the charges on Thursday.
According to the indictment, Kloiber Management Services LLC, which is controlled by the Kloiber family of Lexington, Kentucky, hired Fruits in January 2015 to launch and operate Secure Transit. In 2017, Fruits became a 10% owner of the business.
Between January 2015 and June 2019, the indictment says, the Kloiber family made 16 investments totaling $14.3 million in Secure Transit.
Prosecutors allege Fruits “spent a significant portion of the money on his own personal purchases and payments,” including $880,000 to buy a home at 6555 W. Stones Crossing Road in Greenwood and a horse farm, Travis Creek Stables, at 6417 W. Stones Crossing Road.
Travis Creek’s website describes the facility as a 15-acre property offering an indoor riding arena, 27 horse stalls, a heated barn, horse training, lessons and a competition riding team.Prosecutors say Fruits also spent $560,000 on a recreational vehicle and trailer; more than $110,000 on a Corvette; about $90,000 on three Rolex watches; $55,000 for a show horse named Practically Perfect in Every Way; $30,000 on escort services; and $23,000 on Ferrari payments. Fruits also purchased farm equipment and firearms, among other items, the indictment says.
During this time, Fruits provided his employer with fictitious sales contracts and financial statements that “significantly overstated the company’s actual sales revenue and net income,” the indictment says.
Prosecutors also allege that Fruits was involved in an attempted mortgage fraud scheme in 2018. In that incident, Fruits is accused of submitting false paperwork in an attempt to secure a $432,000 mortgage from Fifth Third Bank.
In a third incident, prosecutors say Fruits orchestrated a title-washing scheme in which he falsely represented that a $69,000 truck loan had been paid off, which allowed him to sell the truck without repaying the loan he had secured from Ally Financial.
Fruits is represented by Indianapolis attorney Theodore Minch of the firm Sovich Minch LLP. Minch declined to comment on the case.