Judge Stacy Wall heard testimony from most of the seven victims in the case during a hearing in January. They said they knew Fries before making investments through his business as an investment adviser and were shown “investment reports” they later learned were fabricated.
Defense lawyer Tom Kollin said Fries had no prior felony conviction, cooperated with investigators, had a high school education and “got himself into a black hole” financially. He asked Wall to consider holding prison over Fries head but allowing him to work to try and get people their money back.
Fries said he knows, “I didn’t physically hurt people but I hurt them, their kids, my reputation … I will use everything in my being to make sure they get their money back.”
Credit: Miami County Jail
Credit: Miami County Jail
Paul Watkins, first assistant county prosecutor, said, “The defendant spent all of this money on his own expenses … The defendant was living off these victims’ money.”
Money was used for expenses such as mortgage payments, truck payments, political contributions, restaurants, golf, gym visits and other personal expenses, those speaking in court said.
Watkins also pointed to a civil judgment for more than $700,000 earlier obtained by the U.S. Securities and Exchange Commission against Fries after he failed to respond to the civil complaint.
“Like these cases, he has not paid a dime,” Watkins said.
Wall said in her sentence she considered the age of the victims, many who were elderly and invested retirement funds; the significant financial harm suffered; and the intentional act of misrepresenting intentions to the victims one described as Fries’ best friend.
“You took the money, said you would invest in it, then at a separate time made false statements to show investors and told them, ‘Your money is making money,’ ” she said.
The crimes eventually came to light when one of the victims went to another investment adviser and was told the statements were fake, she said.
Wall sentenced Fries to a series of concurrent prison terms resulting in the three-year term. Once released, Fries will face another 2-5 years on post-release control.
He was ordered to pay the $418,000 restitution and will receive credit for $9,000 that was repaid to one victim.
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