Brian Simms, Wire Fraud, Indiana 2023

INSURANCE BROKER SENTENCED TO 7 YEARS IN FEDERAL PRISON FOR STEALING $4 MILLION IN PONZI SCHEME

Brian Simms, 46, of Lebanon, Indiana, has been sentenced to 90 months in federal prison for his role in a Ponzi scheme that stole nearly $4 million from clients.

According to court documents, Simms was a licensed insurance broker and registered agent at Brendanwood Brokerage. Between 2012 and 2020, he defrauded at least 22 victims by promoting investment services to current Brendanwood insurance clients and others.

Simms advised victims to liquidate their traditional and long-term insurance investments, such as 401(k)-retirement savings accounts and life insurance policies, and reinvest the funds with him at Brendanwood. He promised higher rates of return, but instead used the money for his own personal benefit, including paying Brendanwood's payroll and other business expenses, and personal expenditures such as credit card payments and Amazon purchases.

Simms concealed the scheme through Ponzi-scheme type payments, using funds wrongfully taken from some investors to pay purported returns to others. He also falsified financial reports and made it appear that the victims' funds were earning an increased rate of return and properly invested in traditional, legitimate investment products.

The scheme caused 200 fraudulent deposits of client funds into Brendanwood's accounts, totaling approximately $3,995,535.46 from at least 22 victim investors from Indiana, Ohio, and elsewhere. Six victims lost over $100,000, and two lost over $1 million.

U.S. Attorney Zachary A. Myers said, 'This fraudster targeted those closest to him – friends, family, current customers, even widows and the elderly – folks relying on their savings to fund retirement, send kids to school, or simply live their lives with dignity.'

Indiana Secretary of State Diego Morales added, 'Simms' sentence reflects the ongoing efforts of collaboration between law enforcement agencies to protect Hoosier investors.'

The Federal Bureau of Investigation and Indiana Secretary of State investigated this case, with U.S. District Judge Sarah Evans Barker imposing the sentence and ordering Simms to pay $2,617,028.36 in restitution.

Source: https://www.justice.gov/usao-sdin/pr/lebanon-insurance-broker-sentenced-over-seven-years-federal-prison-stealing-nearly-4