GRIMY TIMES EXCLUSIVE: EDWARD H. KAHLER, the 64-year-old owner of Key Resources in Kenmore, Washington, was apprehended today on federal charges of mail fraud for unauthorized liquidation of client accounts, according to U.S. Attorney Jenny A. Durkan.
The charges claim that KAHLER, once a licensed insurance producer, exploited his access to proprietary information from his former employer, Variable Annuity Life Insurance Company (VALIC), to liquidate customer accounts and siphon the proceeds for personal gain. His first court appearance is scheduled for 2:00 PM on October 1, 2013, in U.S. District Court in Seattle.
KAHLER’s downfall began when VALIC terminated his employment in 2007 after discovering he was peddling competing annuities. With information at his disposal, the complaint alleges that KAHLER concocted profiles of former clients and manipulated the VALIC online system to liquidate their accounts. The most flagrant instance involved a Christmas Eve 2012 account liquidation of a deceased client from 1984, where he embezzled $125,000 to finance personal luxuries.
According to U.S. District Court guidelines, mail fraud carries a maximum sentence of 20 years in prison. The charges against KAHLER are mere allegations; he is presumed innocent until proven guilty beyond a reasonable doubt.
This investigation was spearheaded by the FBI, the U.S. Postal Inspection Service (USPIS), and the Social Security Administration Office of Inspector General (SSA-OIG). Assistant United States Attorney Justin Arnold is leading the prosecution.
RELATED: Kenmore Advisor Kahler Gets 5 Years for Elder Fraud
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Key Facts
- State: Washington
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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