Founder of DECA Financial Service in Fishers
Charged in $5 Million Fraud
|U.S. Attorney’s Office November 19, 2014|
INDIANAPOLIS—Josh J. Minkler, Acting United States Attorney announced today the arrest of an Indianapolis man for bank fraud, wire fraud and bankruptcy fraud in a scheme involving the theft of over $5 million dollars.
Todd J. Wolfe,
52, was arrested at his home this morning.
“Defrauding a financial institution affects all honest, hardworking individuals,” said Minkler. “Anyone who uses their position to abuse the public’s trust will be held strictly accountable.”
Since 2009, Wolfe operated DECA Financial services in Fishers, Indiana. DECA was a full service credit collections company which at one time employed nearly 75 individuals and whose principal activity was to collect delinquent loans for health care, student loans and financial services.
On two occasions, Wolfe allegedly filed false financial reports to BMO Harris bank inflating the assets of his company. The false reports allowed Wolfe to obtain lines of credit which he in turn used for personal expenses. Over a two and one half year period, the credit extended to Wolfe increased from $1 million to $7.5 million. Affidavits show he used some of the money to make payments on his personal residence, an automobile, personal credit card accounts and a lake house.
In June, 2013 Wolfe agreed to sell an individual $1 million in DECA stock which represented 5% ownership in the company. The victim was never repaid anything for his stock purchase. Wolfe allegedly used some of the $1 million to purchase a 2011 Audi 5S automobile. In February of this year, creditors forced Wolfe into bankruptcy.
An attorney representing Wolfe and DECA filed a motion with the court stating Wolfe had a living trust worth over $14 million which could be used to repay creditors.
The actual value of the trust was $52,000.
The misrepresentation likely would delay the appointment of an independent trustee to oversee the operation of DECA and delay creditor’s access to books and records.
This was a joint investigation with the Federal Bureau of Investigations and the U.S. Bankruptcy Trustee.
FBI Special Agent in Charge W. Jay Abbott stated, “The FBI remains committed to seeking out those individuals that enhance their lifestyle through ill-gotten gains obtained by defrauding financial institutions.”
“I am grateful to Acting U.S. Attorney Minkler and our law enforcement partners for their strong commitment to combating fraud and abuse in bankruptcy cases as evidenced by today’s proceedings,” stated Nancy J. Gargula, U.S. Trustee for Indiana, Central Illinois, and Southern Illinois (Region 10).
The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Region 10 is headquartered in Indianapolis, with additional offices in South Bend, Ind., and Peoria, Ill.
The charges resulted, in part, from a referral by the U.S. Trustee for Indiana and Central and Southern Illinois (Region 10) to the U.S. Attorney. Assistance with the investigation was provided by members of the Southern Indiana Bankruptcy Fraud Working Group coordinated by the U.S. Trustee.
According to Winfield Ong, Criminal Chief for the U.S. Attorney’s Office, Wolfe faces decades in prison and substantial fines if convicted.
A complaint is merely a charge and not proof of guilt. A defendant is presumed innocent and is entitled to a fair trial at which time the government must prove guilt beyond a reasonable doubt.