CLINTON DEE FRALEY INDICTED FOR SECURTIES FRAUD AND THEFT
DENVER — The Colorado Attorney General’s Office announced today that it has charged Clinton Dee Fraley (D.O.B. 01/05/77) of Englewood with 46 felonies for allegedly stealing more than $532,000 from four Colorado mutual-fund investors. Charges were brought after an extensive and thorough investigation by the Colorado Division of Securities which revealed the alleged criminal conduct on the part of Fraley.
“The arrest of Clinton Fraley has stopped his ongoing white-collar crimes,” said Suthers. “Fraley stole money one client inherited from her deceased grandparents and entrusted him to invest. That began his pattern of using people’s savings for his own personal use and entertainment.”
Formerly a financial registered representative of Northwestern Mutual Investment Services and then subsequently Mass Mutual Investors Services (MASS), Fraley built up a client base and sold them financial products such as mutual funds which he invested with American Funds.
Since he was authorized as an account representative, Fraley had access to investor accounts with American Funds while he was employed by MASS and established investment accounts for his customers. Fraley was terminated by his employer in September 2011. Due to a clerical error, he was not removed as the account representative on investor accounts which allowed him to continue to access these client accounts. That is when Fraley began a pattern of stealing funds from investor accounts of four of his former clients. Fraley created and used two financial services companies, Wealth by Design, Inc., and Principal First WMG, LLC.
The filing of criminal charges or an indictment is merely a formal accusation that an individual committed a crime. Each defendant should be presumed innocent until proven guilty. Charges against Fraley have been filed in Arapahoe County Court. A trial dates has not yet been set. Fraley is being held on $500,000 bond and is charged with securities fraud, theft, identity theft and forgery which carry the possibility of prison, fines and restitution.
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