Former Indiana University Foundation Employee Sentenced to One Year in Federal Prison for Embezzling More Than $326,000 in Donations
INDIANAPOLIS - United States Attorney Josh J. Minkler announced today that Ronald W. Nichter, an investment broker from Pendleton, Indiana, was sentenced for his role in a fraud scheme. Nichter, age 60, was sentenced by U. S. District Judge William T. Lawrence to one year in federal prison after his conviction on eight counts of mail fraud. Nichter engaged in a scheme to defraud his clients by withdrawing money from their accounts for his personal use.
“The victims in this case worked hard for their money, and they expected the defendant to work equally hard to protect it,” Minkler said. “Instead, this alleged scheme violated their trust and resulted in significant losses to their investment accounts.”
Nichter purchased and managed securities on behalf of clients in and around central Indiana, including clients in Anderson, Pendleton, and Greenfield.
Beginning in October 2009, Nichter created false documents with forged client signatures requesting that funds be withdrawn from their investment accounts. The checks issued in response to these documents would then be forwarded to addresses to which Nichter had access. Nichter took custody of these checks, deposited them into his bank account and spent the money for his own benefit.
This case was investigated by the United States Secret Service.
According to Assistant U.S. Attorney Bradley P. Shepard who prosecuted the case for the government, Nichter also faces two years of supervised release after serving his sentence and must make full restitution.