Publicly available records provided by the Kentucky Department of Insurance, accessed on January 11, 2018, as well as contemporaneous news reports indicate that former insurance agent Jerry Simpson has been indicted in Kentucky on charges of wire fraud.
According to a press release on kentucky.gov, Jerry Wayne Simpson of Madisonville, Kentucky previously worked as a licensed agent for Thrivent Investment Management. On December 12, 2018 he was indicted on three counts of wire fraud, according to that release, the United States District Court for the Western District of Kentucky. The indictment follows an investigation by the Federal Bureau of Investigation.
The charges against Mr. Simpson stem from allegations that he knowingly caused his former firm, Thrivent Investment Management, “to wire a total of $258,389.08 into his personal bank accounts,” and that the funds came from investors who made purchases of variable annuity products and life insurance policies. He also allegedly “withdrew $248,000 from a client’s bank account” and then deposited those funds in a personal account under his control, sometime between November 2016 and August 2017, according to the press release.
A news report by Tristate published on December 26, 2018 states that there is no court date set fo Mr. Simpson, but that if he is found guilty, “he could face forfeiture, restitution, $250,000 in fines and up to 20 years in prison.”
According to his BrokerCheck report, Jerry Simpson was indefinitely barred by FINRA in 2018 in connection to allegations he refused to produce documents and testimony in connection with a review of allegations he failed to inform his firm of a felony charge “alleging wanton abuse/neglect of an adult by a person, and that he may have misappropriated funds from customers.” He resigned from the firm in December 2017 after it received information indicating he had failed to inform the firm of a felony charge and that he may have misappropriated funds from three clients. In 2011 he was charged with felon theft of “Wanton abuse/neglect of Adult by person,” a charge that remains pending. He had been employed with Thrivent Investment Management in Madisonville, Kentucky from 2015 until 2017.
In the government press release, Department of Insurance Commissioner Nancy Atkins said in a statement, “I’d like to thank the Department of Insurance fraud investigators for their hard work and due diligence in fighting fraud.” The release notes in conclusion that an indictment is an accusation and that accused parties are presumed innocent until the government proves guilt beyond a reasonable doubt.