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The Frankowski Firm is one of the few law firms in the country whose practice is dedicated to representing consumers against stock brokers and brokerage firms. Our attorneys are passionate about helping investors who have been taken advantage of by their financial advisors. While we are based in... More
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The Practitioner's Guide to Securities Arbitration
  • Indiana Investment Advisor Pleads Guilty To Securities Fraud 0 comments
    Aug 14, 2014 11:01 AM

    Lynn A. Simon, an investment advisor from Evansville, Indiana, pleaded guilty yesterday to charges arising from allegations last year that he conned over $1 million out of investors in the area. The charges included three counts of securities fraud, class B felonies, and one charge of unlawful sale of a security, which is a class C felony.

    Simon reached an agreement with the Indiana Secretary of State's Office that would send him to prison for two years and eight years of work release. Judge David Kiely will have to decide whether or not to uphold the agreement.

    Simon was a registered investment advisor and the sole owner of Financial Security Planning, which operated as a satellite office of CFD Securities of Kokomo, Indiana. Simon also owned The Insurance Shoppe.

    Local, state, and federal law enforcement agents started their investigation of Simon in April 2013 after he went missing and the Indiana Secretary of State's Office starting getting complaints about him. The investigations found that Simon issued promissory notes that showed a rate of return at a specified maturity date but Simon also would tell investors that if they requested money it would be given in the order received and only if there was enough money coming into the fund.

    None of the investments investigated sold under the Financial Security Planning name were registered with the state as required by law. Bank records did not show money going to investments of insurance companies as purported by Simon. Instead, the money was going into the account and then either went to other investors or was withdrawn by Simon, who was the only person authorized to use the account. More than $42,000 was withdrawn the day before his wife reported him missing.

    Investigators followed Simon to Alabama and then to New Mexico before the Vanderburgh County Prosecutor's Office obtained a warrant for his arrest. Simon surrendered at the Vanderburgh County Jail in September as Secret Service agents and local police were trying to locate him and serve the warrant.

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