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BOISE, Idaho — A federal grand jury on Tuesday indicted a Boise securities broker on 10 counts of wire fraud after he went missing amid an investigation for a believed Ponzi scheme.
Rodney Allen, 65, vanished amid questions of investment fraud on April 20, forcing his investors to file for an emergency involuntary bankruptcy on April 25 to freeze his assets. At least 77 creditors are named in the bankruptcy case, which is separate from the new indictment.
The Idaho Department of Finance began its investigation after questions about whether his company, KA Investments LLC, was certified and about the payments he was making to investors. According to the indictment, Allen “did devise a scheme to defraud, as to material matters, clients of his brokerage company, KA Investments.”
It was unclear as of Wednesday how much money Allen was accused of wrongfully taking, but court documents show the gross proceeds exceeded $4 million.
Each count of wire fraud is punishable by up to 20 years in prison. A warrant for Allen’s arrest has been issued.
As of Wednesday, Boise police reported that Allen was still missing. The FBI is offering a $10,000 reward for information leading to Allen’s arrest. In addition, Crime Stoppers is offering a $1,000 reward for information leading to Allen’s arrest, according to the U.S. Attorney’s Office.
To read the full story, visit the Idaho Statesman.
