Former Investment Advisor Indicted For Defrauding Brentwood Woman

Jay Costa Kelter, formerly known as Ignatius J. Costa, III, 48, was indicted yesterday by a federal grand jury on five counts of wire fraud, 16 counts of mail fraud, and one count of securities fraud, announced U.S. Attorney Don Cochran of the Middle District of Tennessee.

The indictment alleges that Kelter, who was affiliated with a Florida-based insurance and investment company, defrauded an elderly Brentwood, Tenn. woman out of approximately $1.4 million.  Detailed allegations set forth in the indictment include that Kelter convinced the victim to open investment accounts with a discount brokerage company by falsely stating that he was employed with the discount brokerage company.  Kelter routinely posed as the victim investor to conduct trades and transfer funds to accounts which he personally owned or controlled.  Kelter spent thousands of the victim’s investment funds on expenditures benefitting himself and others, including purchases and payments for luxury cars such as a Mercedes, a Lamborghini and a $101,400 Bentley; and paying more than $21,000 for custom jewelry. The indictment also alleges that Kelter used some of the client funds to repay other investment clients.

If convicted, Kelter faces up to 20 years in prison on each count and up to a $5 million fine.

This case is being investigated by Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Stephanie N. Toussaint.

An indictment is merely an accusation.  The defendant is presumed innocent unless and until proven guilty in a court of law.