Missing Securities Broker Indicted
BOISE – Rodney Allen, 65, the sole owner and president of KA Investments, LLC, of Boise, Idaho, was indicted on January 9, 2018, by a federal grand jury sitting in Boise for wire fraud, and an arrest warrant was issued, U.S. Attorney Bart M. Davis announced.
The indictment alleges that from in or about 2016 to in or about 2017, Allen devised a scheme to defraud clients of his brokerage company, KA Investments, LLC, and obtain their money by false pretenses and promises, and misappropriate their money. Namely, the indictment alleges that Allen misrepresented in monthly statements provided to clients that clients were earning positive returns on investments, when in truth and in fact, clients were earning negative returns on investments.
For instance, the indictment alleges that on December 6, 2016, Allen emailed a November 2016 monthly statement to client M.F. In the statement, Allen represented that M.F.’s account had earned 1.903 percent that month. In reality, M.F.’s account had lost 36.01 percent.
Further, according to the indictment, Allen misrepresented to clients of KA Investments, LLC that he was taking between a 14-percent and 18-percent commission on investment profits. In truth, he was misappropriating client deposits for his personal use, regardless of profit or loss, and at a greater percentage.
On April 20, 2017, Allen was reported missing. From April through September 2017, law enforcement conducted multiple searches for Allen in the vicinity of his abandoned truck, in a remote area near the Snake River. These searches included searches with cadaver dogs. The searches were unsuccessful in locating Allen or his body, and Allen remains missing. The Federal Bureau of Investigation is offering a $10,000 reward for information leading to Allen’s arrest. In addition, Crime Stoppers is offering a $1,000 reward for information leading to Allen’s arrest.
The case was investigated by the Federal Bureau of Investigation and the Boise Police Department.
An indictment is a means of charging a person with criminal activity. It is not evidence. A person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.