The gritty streets of Aurora, Ohio, witnessed another chapter in the tale of financial deceit as Andrew J. Franz, 41, faces a staggering 10-count charge for swindling his employer and investment clients out of $366,000. United States Attorney for the Northern District of Ohio, Steven M. Dettelbach, and Special Agent in Charge Stephen D. Anthony of the FBI’s Cleveland office, have brought this shocking revelation to light.
According to the charges, Franz, employed by Beachwood-based Ruby Corporation, systematically siphoned off tens of thousands of dollars from his employer and clients through mail fraud, securities fraud, investment adviser fraud, and income tax evasion. Dettelbach minced no words in describing Franz’s treachery, stating, ‘This defendant betrayed the trust of his employer and his clients, lining his pockets with the money that people worked a lifetime to save.’ Anthony echoed the sentiments, emphasizing the FBI’s commitment to justice for those whose hard-earned money was stolen.
The detailed charges against Franz outline how he misappropriated funds by submitting fraudulent fee requests to mutual fund and annuity companies. These requests led to checks being mailed to Ruby Corporation, which Franz intercepted and funneled into his personal accounts. He even managed to deposit some of these funds under Ruby’s name in a bid to hide his crimes. The Integrity Life Insurance Company sent three checks directly to Franz’s residence as payment for false fee requests, solidifying the scope of his fraud.
But the deceit didn’t stop there. Count 4 charges Franz with securities fraud through manipulative and deceptive devices, while count 5 accuses him of aiding and abetting Ruby Corporation in a fraudulent investment scheme. Counts 6 to 8 pertain to income tax evasion for 2007 to 2009, and counts 9 and 10 involve evading taxes for 2010 and 2011 by failing to file returns and conducting business affairs without declaring the necessary income.
This case serves as a stark reminder of the lengths some will go to enrich themselves at others’ expense. Franz’s actions have not only caused financial hardship but also eroded trust within the investment community. The FBI stands ready, as always, to combat such fraud and protect the public’s interests.
Related Federal Cases
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- Aurora Swindler Sentenced to Six Years for $300k Fraudulent Scheme · Indiana
Key Facts
- State: Ohio
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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