NASHVILLE, TN – Fredrick M. Stow, 66, of Franklin, Tennessee, is headed to federal prison after admitting to systematically stealing $933,500 from two vulnerable elderly clients. The former Investments Vice President at Raymond James & Associates, Inc. received a five-year sentence yesterday following a guilty plea entered in August 2020.
Stow was initially charged in June 2020 with securities fraud, wire fraud, and aggravated identity theft. The scheme, spanning years, involved forging wire transfer authorizations to siphon funds from his clients’ accounts into accounts he jointly owned with his wife. The U.S. Attorney’s Office for the Middle District of Tennessee, alongside the U.S. Securities and Exchange Commission (SEC), built the case, with the SEC also filing a civil action against Stow.
The primary victim was a 98-year-old retired airline pilot and WWII veteran. Stow had managed the veteran’s investments since 1982, moving accounts with him through multiple firms, ultimately landing at Raymond James in 2013. Over decades, Stow ingratiated himself into the client’s life, even making house calls. Relatives testified the man died believing his dwindling funds were simply the result of poor market performance – unaware he’d been robbed by the man he trusted.
Between October 2015 and the veteran’s death in March 2018, Stow executed 74 unauthorized transfers, pilfering over $900,000. He didn’t stop there. Within weeks of the veteran’s passing, Stow turned his attention to another elderly brokerage customer, stealing an additional $32,000 by transferring funds into yet another SunTrust account under his control. The brazenness of the continued theft following the first victim’s death highlights the defendant’s callous disregard for the vulnerable.
U.S. District Judge Aleta A. Trauger delivered a scathing rebuke during sentencing, condemning those who abuse their position of trust, particularly when targeting the elderly. Judge Trauger also ordered Stow to forfeit $933,500 – a fraction of the damage done to his victims’ lives. The investigation was a joint effort between the United States Secret Service and the SEC, with Assistant U.S. Attorney Stephanie N. Toussaint leading the prosecution.
This case serves as a stark reminder of the pervasive threat of financial exploitation facing seniors. While a five-year sentence provides some measure of justice, it does little to restore the stolen funds or the peace of mind of the victims and their families. The SEC’s parallel civil action will likely seek further restitution and penalties, but the scars of this betrayal will undoubtedly linger.
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Key Facts
- Agency: U.S. Secret Service
- Category: Fraud & Financial Crimes
- Source: Official Press Release
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