SALT LAKE CITY, Utah, Nov. 26, 2019 (Gephardt Daily) — A Logan man is facing a five-count indictment after he allegedly devised schemes to defraud investors, including one in which he diverted at least $462,000 from an elderly woman’s bank account.
Thomas Fairbanks, 66, will be in federal court Dec. 5 for an initial appearance, said a news release from the FBI Salt Lake City.
“The indictment alleges Fairbanks devised a scheme to defraud investors using materially false and fraudulent pretenses, representations and promises, and omissions of material facts,” the news release said.
As a part of the scheme, Fairbanks “earned the trust of a vulnerable older adult, and diverted at least $462,000 of her money for his personal use and benefit. She is unmarried, has no children, and is in her 80s,” the news release said.
According to the indictment, Fairbanks was the founder and CEO of SupplyLine Partners, an unregistered business. The company maintains a website, which purports to provide marketing, administrative, and other business support services. It has never been registered to issue securities, the indictment alleges. Fairbanks is also involved in other business entities.
Fairbanks offered and sold an investment opportunity in SupplyLine to the elderly woman and also a couple, the news release said. Fairbanks accepted $45,500 in cash from these victims, promising them a 6 percent return — or their money back.
“Fairbanks made a number of misrepresentations to the investors, including telling them assets of other business collateralized their investment, they could liquidate their investments at any time, they would receive an accounting of their investment, and the funds would go toward SupplyLine’s business efforts — among other things,” the news release said.
The indictment alleges that Fairbanks, in an effort to induce further investments, began giving investment and financial advice to the elderly woman. She then opened a joint personal checking and savings account with Fairbanks using her money, officials said.
“The indictment alleges the woman believed Fairbanks would help manage her finances, deal with her finances in her best interest, not put her money at substantial risk, and help her write checks,” the news release said. “The $462,000 he diverted from her account is in addition to the $40,000 she invested in SupplyLine.”
Fairbanks utilized his interests in other business entities to receive the misappropriated funds, the indictment alleges.
He faces up to 20 years in prison for each of the wire fraud counts; two counts, up to five years for each count of securities fraud; two counts, and up to 10 years for the money laundering count. Individuals charged in indictments are presumed innocent unless or until proven guilty in court.
Assistant U.S. Attorneys from the U.S. Attorney’s Office are prosecuting the case. The Utah Division of Securities along with special agents of the FBI are investigating the case.
“Combating financial fraud targeted at seniors is a key priority of the U.S. Department of Justice and the U.S. Attorney’s Office in Utah,” the news release said. “Together with federal, state, local and tribal partners, the Department of Justice and U.S. Attorney’s Office are committed to combating financial exploitation through enforcement actions, training and resources, research, victim services, and public engagement efforts. The U.S. Attorney’s Office in Utah recently collaborated with the Utah Division of Aging and Adult Services to provide training on financial fraud and elder abuse for more than 100 law enforcement officers in Utah.”
