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SALT LAKE CITY — A Logan man who allegedly took hundreds of thousands of dollars from a woman in her 80s in an investment scheme is facing federal charges.
Thomas Fairbanks, 66, gained the trust of the woman, who is unmarried and has no children, and diverted at least $462,000 of her money for personal use, according to an indictment filed in U.S. District Court.
Fairbanks was the founder and CEO of SupplyLine Partners, which federal authorities say was an unregistered business. The company maintains a website, which purports to provide marketing, administrative and other business support services, but was not registered to issue securities, the indictment says.
According to the indictment, Fairbanks offered and sold an investment opportunity in SupplyLine to the woman, identified in court documents as B.D., and a couple, J.H. and R.H. Fairbanks accepted $45,500 from them, promising them a 6% return or their money.
Prosecutors says Fairbanks made a number of misrepresentations, including telling them the assets of other businesses collateralized their investment, they could liquidate their investments at any time, they would receive an accounting of their investment, and the funds would go toward SupplyLine’s business efforts.
In addition, Fairbanks started giving investment and financial advice to B.D. She opened a joint personal checking and savings account with Fairbanks using her money, according to the indictment.
The indictment alleges B.D. believed Fairbanks would help manage her finances in her best interest, not put her money at substantial risk, and help her write checks. The $462,000 he diverted from her account was in addition to the $40,000 she invested in SupplyLine, prosecutors say.
Fairbanks is charged with two counts each of wire fraud and securities fraud and one count of money laundering.
