Financial Advisor Accused Of Defrauding Woman Of $246K
A Raleigh man is accused of defrauding a Durham woman of $246,000 through mail and wire fraud, the U.S. Attorney's Office said Tuesday.
Furman Alexander Ford, 49, was arrested after being indicted by a federal grand jury on 11 counts of mail and wire fraud, Robert J. Higdon Jr., the U.S. attorney for the Eastern District of North Carolina, said in a news release.
Ford is accused of submitting fraudulent withdrawal letters on behalf of the woman, whose name was not given, to New York Life Insurance between August 2014 and December 2014, the release said. Ford was a financial advisor for New York Life, the release said.
In 2009, the woman inherited real property valued at $1.3 million from a relative in Durham. When the estate was settled, Ford helped the woman set up a charitable trust with New York Life, the release said.
Ford was an insurance and financial agent at the company from 2012 to 2015 and met the woman through a mutual friend, the release said.
The charitable trust agreement provided an annuity payment of $6,000 per month to the woman.
The U.S. attorney described the alleged fraud:
Ford drafted and submitted authorized letters of withdrawal from the woman's trust account to pay certain expenses. The company required the financial agent to have the client sign such letters with "wet ink" before submitting them to New York Life through the mail. The money would then be electronically wired to the recipient.
During the investigation, agents identified 11 fraudulent letters of withdraw drafted by Ford and submitted to New York Life on behalf of his client. The letters were all mailed by Ford via UPS from his office in Raleigh. The funds requested ranged from $5,000 to $45,000 and totaled $246,000, the release said.
The money was then electronically wired into the woman's personal checking account in violation of New York Life's policy. Agents believe Ford "cut and pasted" the woman's signature before making a copy and sending it to New York Life on some of the fraudulent letters. Investigators said they believe her signature was forged on the remaining letters, the release said.
If convicted on all of the charges, Ford would face a maximum penalty of 20 years imprisonment, a $250,000 fine, and a term of supervised release of not more than three years, and restitution.
The case was investigated by the U.S. Postal Inspection Service and the Federal Bureau of Investigation. Assistant U.S. Attorney Ethan Ontjes is prosecuting the case.
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