Investigation by Secretary of State’s office leads to arrest
INDIANAPOLIS –
Lynn A. Simon of Newburgh, Indiana was brought to custody with assistance from the Secret Service, the Evansville Police Department and the Warrick County Sheriff’s Department earlier this week for an alleged Ponzi scheme according to court documents. Simon has been investigated by Secretary of State Connie Lawson’s office for allegedly swindling investors out of over $1 million. Vanderburgh County Prosecutor Nicholas Hermann filed multiple felony securities fraud charges resulting in the issuance of an arrest warrant for Simon.
The investigation began when Simon went missing from the state in April. Investors started reporting to the Secretary of State’s office they were no longer receiving interest payments on their investments. After Simon apparently left the state, authorities traced his whereabouts to Alabama and then later to New Mexico. He continued to roam free, while authorities sought to serve the arrest warrant until earlier this week when he submitted to the authority of the Court, just as the Secret Service and local police zeroed in on his location.
According to the Probable Cause affidavit, investigators believe at least 12 people were victimized by Simon’s scheme. He allegedly offered his victims the opportunity to invest in his “special company†and promised a high rate of return. Over the past 25 years, Simon had earned most of his victims’ trust by serving as their insurance agent and investment advisor. He operated two Evansville companies: The Insurance Shoppe and Financial Security Planning.
“Many of Simon’s victims were shocked when they learned of these allegations.,†said Secretary Lawson. “Unfortunately, this is generally true in many Ponzi scheme cases. No matter how well you think you know your financial professionals, you should always ask questions and check with my office to make sure you are working with a licensed professional. I applaud Prosecutor Hermann for his commitment to prosecuting white collar crime.â€
This week, Simon went before a judge in Vanderburgh County. He was released on a $100,000 professional bond and was placed on home detention as a condition of bond. He is facing a Class C felony securities fraud charge, a Class C felony for the sale of
unregistered securities and Class B felonies for securities fraud upon a victim over age 60.
For information on how to avoid becoming a victim of investment fraud visit www.indianainvestmentwatch.com.
