NASHVILLE, TN – A Tennessee financial advisor is facing federal charges after allegedly pilfering over $933,000 from two elderly clients, including a 98-year-old WWII veteran. Fredrick M. Stow, 65, of Franklin, Tennessee, has been charged with securities fraud, wire fraud, and aggravated identity theft, U.S. Attorney Don Cochran announced Friday.
The alleged scheme spanned years, beginning in 1982 when Stow first began managing the accounts of a retired airline pilot. Moving between firms, Stow consistently convinced the client to transfer his investments, ultimately landing at Raymond James & Associates, Inc. in 2013. Prosecutors claim Stow didn’t just manage the man’s money; he insidiously inserted himself into his personal life, regularly visiting the increasingly vulnerable veteran who required full-time nursing care.
Beginning in October 2015, Stow allegedly began forging wire transfer authorizations, siphoning funds from the client’s IRA account into a SunTrust Bank account he shared with his wife. He didn’t stop there. The indictment details a pattern of selling securities within the client’s IRA and diverting the proceeds to his own personal bank account. By the time the client died at the age of 98 in March 2018, Stow had executed 74 unauthorized transfers, totaling over $900,000 in stolen funds.
The theft didn’t end with the veteran’s death. Within weeks of the man’s passing, Stow is accused of stealing an additional $32,000 from another elderly brokerage customer, again transferring the money into a SunTrust account he controlled. The U.S. Securities and Exchange Commission (SEC) has also filed a civil action against Stow, alleging violations of the Securities Exchange Act of 1934.
“The conduct alleged here is detestable,” said U.S. Attorney Cochran, speaking on World Elder Abuse Awareness Day. “Protecting our senior citizens from fraudsters like this is one of our highest priorities.” If convicted on all charges, Stow faces up to 20 years in prison and a fine of up to $5 million. The government is also seeking a monetary judgement and forfeiture of any assets obtained through the alleged fraud.
The case was a joint investigation by the U.S. Secret Service and the SEC, with Assistant U.S. Attorney Stephanie Toussaint leading the prosecution. This investigation underscores the ongoing threat to vulnerable seniors and the commitment of federal agencies to pursue those who prey on them. The full extent of Stow’s alleged financial misdeeds remains under scrutiny as the case progresses.
Related Federal Cases
- David Rivera, Election Fraud, Nashville TN, 2016 · Tennessee
- Charlotte McEwen, Pleads Guilty to $466K Wire Fraud, Nashville TN, … · Kansas
- Nicole Bogan, Health Care Fraud, Columbus GA, 2013 · Georgia
- Robert J. Berryhill, $300k Mail and Wire Fraud, OH, 2023 · Tennessee
- Paul D. Allen, Bank Fraud Scheme, MS, 2023 · Tennessee
Key Facts
- Agency: U.S. Secret Service
- Category: Fraud & Financial Crimes
- Source: Official Press Release
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