Founder of DECA Financial Service in Fishers sentenced in fraud case
INDIANAPOLIS B United States Attorney Josh Minkler announced today the sentencing of a former financial institution owner after pleading guilty to wire fraud, bank fraud and bankruptcy fraud charges. Todd J. Wolfe , 54, was sentenced to 51 months (over four years) imprisonment by U.S. District Judge Tanya Walton Pratt.
“Defrauding a financial institution effects all honest, hardworking individuals,” said Minkler. “Anyone who uses their position to abuse the public’s trusts 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 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 used some of the $1 million to purchase a 2011 Audi 5S automobile. In February 2014, 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 delayed the appointment of an independent trustee to oversee the operation of and access to books and records.
This was a joint investigation with the Federal Bureau of Investigation and the United States Trustee for Region 10.
“Today’s sentence reaffirms the FBI’s commitment to finding those who use their positions of trust to pad their pockets and enhance their lifestyle by defrauding financial institutions,” said W. Jay Abbott, Special Agent in Charge of the FBI’s Indianapolis Division. “I applaud the hard work of our agents and those of the Southern Indiana Bankruptcy Fraud group who dedicated many hours to this case.”
“Together with U.S. Attorney Minkler and our law enforcement partners, we will continue to pursue fraud and abuse in bankruptcy cases,” stated Nancy Gargula, U.S. Trustee for Indiana and Central and Southern Illinois (Region 10)
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. 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.
Winfield Ong, Criminal Chief for the U.S. Attorney’s Office, said Wolfe must serve three years of supervised release following his sentence and make restitution of $5,023,613 to his victims.