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Hawaii financial advisor who targeted elderly sentenced to federal prison
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US District Court – Hawaii
BY MALIA ZIMMERMAN – HONOLULU – Kevin Alan Loux, owner of the Loux Financial Group, was sentenced to 46 months in federal prison and 5 years of supervised yesterday despite a tearful plea for mercy to U.S. District Judge Susan Oki Mollway.
The 63-year-old licensed independent life insurance and annuity broker, who operated in Hawaii and California, must also pay back $417,188 he stole from five victims between 2009 through 2014.
Headquartered in vacation rentals in San Diego County, California and Princeville, Kauai, state records show Loux “targeted and exploited older clients who were unusually vulnerable due to their advanced age, physical, or mental condition.”
He offered his clients in Hawaii, California, Arizona, Tennessee and Illinois high-yield investments in a “brokerage account program” as well as high-yield annuities with other insurance companies.
His victims included two couples and an individual who lost $45,850, $145,472 and $226,864.
FBI Special Agent Tom Simon led the investigation into Kevin Alan Loux after Loux targeted elderly clients in a Ponzi scheme
Court records show: “Loux was not accepting money to be invested through his brokerage account, in annuities with other insurance companies, or being invested at all, and instead was accepting and using this client money for his personal expenses, to supplement his income, and to create the illusion of legitimate financial returns to other clients.”
FBI Special Agent Tom Simon was the lead investigator in the case, which was referred to the FBI by the State of Hawaii Department of Commerce and Consumer Affairs Securities Enforcement Branch.
“From the FBI’s perspective, we hope this sentence will bring some closure to the victims who were emotionally and financially devastated by the actions of the Defendant,” Simon said.
Besides going to federal prison and being ordered to pay restitution, the state Department of Commerce and Consumer Affairs fined Loux $25,000, and in Oct. 2014, filed notice of intent to revoke his state insurance license.
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Source: http://www.hawaiireporter.com/hawaii-financial-advisor-who-targeted-elderly-sentenced-to-federal-prison/123
