A Logan man has been found guilty of securities fraud, swindling over $600,000 from at least two Utah residents.
Thomas Fairbanks, 69, of Logan, was convicted of securities fraud after a three-day trial in the District of Utah. The verdict was handed down on August 30, 2022.
Fairbanks, the CEO and founder of SupplyLine Partners, a company based in Logan, was accused of falsely representing the purpose of his business to investors. He claimed that SupplyLine Partners would work as a cooperative to fund the financial needs of local businesses, leveraging those businesses’ assets to generate cash flow that would benefit the local community.
However, prosecutors presented evidence that none of these representations were true. Fairbanks was not registered as a business with the State of Utah, and neither SupplyLine nor Fairbanks were ever licensed to sell securities.
In order to induce victims into investing in his scheme, Fairbanks promised investors a six percent annual return on their investments, regular accounting, and the ability to liquidate their investment at any time. He also claimed that invested funds would go towards funding SupplyLine’s lending capital and that SupplyLine’s investments were collateralized by assets of other businesses.
However, Fairbanks used some of the money collected from victims to fund his own business enterprises and to make loans to a realty company where he worked as a real estate agent.
Assistant United States Attorneys Ruth Hackford-Peer and Kevin Sundwall tried the case against the defendant. Investigators from the Utah Division of Securities conducted the investigation with assistance from the FBI.
SupplyLine Partners is not registered as a business with the State of Utah and neither SupplyLine nor Fairbanks were ever licensed to sell securities. Fairbanks offered and sold investment opportunities in SupplyLine to at least two Utah residents, collecting money from them.
The victims lost over $600,000 in the scheme. Fairbanks’ sentencing details have not been released yet.
Related Federal Cases
- David Aldrich, Securities Fraud Scheme, California 2024 · Utah
- Wayne LeMar Palmer, Wire Fraud, Utah 2024 · Utah
- Keith Eric Jergensen, Investment Fraud, Utah 2024 · New York
- Armand J. Croteau, $1.9M IRS Fraud Scheme, FL, 2023 · Alabama
- Adrianne Marta Frazer, Tax Refund Fraud, Phoenix AZ, 2023 · Massachusetts
Key Facts
- State: Utah
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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