According to an Indictment filed with The United States District Court for the Eastern District of Texas Sherman Division, former Parkland Securities broker Keith Todd Ashley allegedly intended to devise a scheme to obtain money and property from investors with the specific intent to defraud. Specifically, Keith Ashley indictment is alleging that the former broker would allegedly solicit money from investors for purported investments that he represented with no risk. Ashley would then divert these investment funds for his own personal use, as reported on the indictment.
Investor rights attorney Alan Rosca and his colleagues of the Rosca Scarlato LLC law firm are currently investigating Keith Todd Ashley’s alleged participation in a scheme to defraud. Investors who are concerned they suffered a loss as a result of Keith Ashley’s alleged wire fraud scheme are encouraged to contact Alan Rosca for a free case evaluation or discussion of recovery options. Call 888-998-0530, via email at arosca@rscounsel.law, or through the contact form on this webpage.
Keith Todd Ashley Allegedly Charged with Six Counts of Wire Fraud
From December 23, 2013 until May 14, 2020, broker Keith Ashley knowingly devised a scheme to defraud victim investors through wire communication in interstate commerce writings, signs, signals, pictures, and sounds according to the Indictment filed on November 12, 2020 in Sherman, Texas.
Ashley reportedly controlled, used, and maintained three bank accounts to advance his scheme by receiving and depositing funds from individuals who thought they were investing in legitimate investments. He also used the bank accounts to exchange and transfer funds between the accounts.
- In June 2002, Ashley allegedly opened a personal bank account with Bank of America
- In January 2010, Ashley allegedly opened a personal bank account under the name of North Texas Money Management (NTMM) with Chase Bank
- In June 2013, Ashley allegedly opened a business bank account under the name KBKK, LLC with Citibank, now known as Branch Banking & Trust Company (BB&T)
Beginning around December 23, 2013, Ashley allegedly started representing that he was investing funds with Parkland Securities and SmartTrust in a Unit Investment Trust by soliciting money from individuals.
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Allegedly, Ashley was able to solicit money from individuals in person, by email, and through wire transmissions in interstate commerce. Ashley allegedly made false statements, representations, and promises to potential investors, claiming their investments would result in guaranteed returns between 3% and 6% to 9% per year on their funds. He also claimed there was no risk to their initial principal investment, and the funds would be invested through SmartTrust or Parkland Securities in a Unit Investment Trust, as reported on the Indictment.
Broker Keith Ashley allegedly kept a significant portion of the money he received from individuals instead of investing the money as he represented, stated, and promised would occur, the indictment states. Ashley allegedly wire transferred or direct transferred the balance from his BB&T business bank account to his personal bank accounts at Bank of America and Chase Bank and used the individual’s money for his own personal use.
In total, Keith Ashley allegedly received approximately $1,311,200 from individuals whom he made materially false representations, pretenses, and promises related to investing funds with SmartTrust or Parkland Securities in a Unit Investment Trust, as stated on the Indictment.
Reportedly, Ashley spent approximately $1,143,288 in investor funds on personal expenses such as brewery expenses, casinos, payments on personal credit cards, legal fees, cash withdrawals, mortgage payments, college tuition, student loan payments, and utilities. Furthermore, Ashley returned approximately $81,325 to investors, the Indictment reports.
As alleged in the Indictment, Keith Ashley purportedly conducted his scheme through text message, via email or in person with multiple individuals. One individual who invested $221,200 in Ashley’s scheme, suffered a net loss of approximately $124,113.58. Another individual who invested $770,000 in Keith Todd Ashley’s scheme, suffered a net loss of approximately $687,392.96. A third individual who invested $145,000 in Ashley’s scheme, suffered a net loss of approximately $97,328.51. A fourth individual who invested $75,000 in Keith Ashley’s scheme, suffered a net loss of approximately $74,742.19.
According to the official press release, Keith Todd Ashley was charged by the federal grand jury in Sherman, Texas on November 12, 2020 with six counts of wire fraud. He could face up to 20 years in federal prison and the United States is seeking forfeiture in the amount of $1.143 million.
Investors who are concerned they may have suffered a loss from broker Keith Ashley’s alleged wire fraud scheme are encouraged to contact investor rights attorney Alan Rosca and his colleagues for a free, no-obligation case evaluation or discussion of recovery options. Call 888-998-0530, via email at arosca@rscounsel.law, or through the contact form on this page.
Ashley Was Discharged from Parkland Securities for Engaging in Undisclosed Outside Business Activities
According to broker Keith Todd Ashley’s FINRA Brokercheck page, Parkland Securities discharged Ashley on October 27, 2020 for allegedly engaging in undisclosed outside business activities and failure to provide the firm with prior notice of private securities transactions involving his privately held company.
Ashley was registered with Parkland Securities located in Allen, Texas, from February 2002 until October 2020. Previously, Ashley worked for Sigma Financial Corporation located in Ann Arbor, Michigan, from February 2002 until May 2002 and Walnut Street Securities located in El Segundo, California from March 2000, until February 2002.
Finally, it is important to note that, as of the date of this article, there has not been a finding of liability as to the complaints or allegations mentioned in this article, unless otherwise indicated. Any reader should also read the original sources hyperlinked in this blog for accuracy, including any BrokerCheck report and/or record of any disciplinary or regulatory action. Those sources are incorporated by reference into the text of this blog, and are the governing materials in case of any inconsistencies or typos in this blog.
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Potential Recovery Options for Keith Ashley Investors
The investor rights attorneys at Rosca Scarlato LLC law firm have decades of experience working with investors who have invested their savings with their investment advisor or broker only to have them misuse their funds.
Alan Rosca and his colleagues are currently investigating broker Keith Todd Ashley’s alleged wire fraud scheme. Investors are encouraged to reach out to attorneys at Rosca Scarlato for a free case evaluation where you can share your experience working with former Parkland Securities broker Keith Todd Ashley and discuss potential recovery options.
Please note that the attorneys at Rosca Scarlato take most of their cases on a contingency fee basis, which means the firm advances the costs associated with representing investors, and only get paid for their fees and expenses at the conclusion of the case, if they are successful. We only get paid if we win. You can reach attorney Alan Rosca by phone at 888-998-0530, via email at arosca@rscounsel.law, or fill out the contact form on this webpage.
