Greenwood Man Faces Federal Charges for Fraud Scheme
(photo courtesy of the U.S. Attorney for the Southern District of Indiana)
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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowU.S. Attorney John Childress’ office has announced that Daniel Fruits of Greenwood has been charged by a federal grand jury for his alleged role in three separate fraud schemes. The charges include a nearly $14 million fraud on an investor, an attempted mortgage fraud, and a vehicle title-washing scheme.
The indictment alleges Fruits spent the stolen funds on Ferraris, horses, Rolex watches, and escorts.
According to the indictment, Fruits allegedly defrauded a Kentucky investor over a four-and-a-half-year period while Fruits was employed at the investor’s newly-formed trucking company. The investor founded Secure Transit in 2015 and hired Fruits to manage the business.
During that time, Childress’s office claims Fruits lied about the company’s financial health, who its customers were, and what the investor’s money was being used for. Fruits was allegedly sending the investor fake customer sales contracts and inflated financial statements.
“This financial investor gave his hard-earned money to someone whom he thought he could trust,” said Childress. “Instead, the victim’s money ended up in the hands of a self-absorbed thief who only cared about his interests. Living a life of fraud is inexcusable and always comes to an end.”
Fruits also allegedly asked the investor for other investments, including some for millions of dollars for new trucks and other business expenses.
According to Childress’s office, Fruits spent most of the investor’s money on his own personal purchases and payments, including approximately $880,000 to buy a personal home and horse farm, $560,000 for an RV and trailer, and over $111,000 on a Corvette. The purchases also included three Rolex watches, a horse, horse trailer, payments for two Ferraris, and payments for two escorts.
“This indictment sends a strong message that the FBI will aggressively investigate those who commit such extensive financial fraud and steal from their employer to pad their own pockets to fund a lavish lifestyle,” said FBI Indianapolis Special Agent in Charge Paul Keenan. “The FBI and our law enforcement partners will always pursue those who take advantage of others through illegal and criminal behavior.”
In addition to the fraud on the investor, Fruits attempted to perpetrate a mortgage fraud scheme on Ohio-based Fifth Third Bank (Nasdaq: FITB). In 2018, Fruits twice made false statements to the bank to secure a more than $430,000 mortgage.
The final charge alleges Fruits perpetrated a title-washing scheme to remove a lien from the title of a truck he purchased. Fruits had financed the truck with a nearly $70,000 loan from Ally Financial.
The Attorney’s office says he allegedly sent the Indiana Bureau of Motor Vehicles a falsified letter from Ally Financial stating that the loan had been paid off and the lien should be released. The loan, however, was not paid off, and as a result, the BMV issued Fruits a free-and-clear title for the truck, which Fruits then sold for $48,000, without repaying the loan to Ally Financial.
This case was the result of an investigation by the Federal Bureau of Investigations, and Internal Revenue Service Criminal Investigation.