LOGAN — A 66-year-old Logan man is facing federal fraud charges, alleging that he devised a scheme to defraud investors. Thomas Fairbanks will be arraigned in Federal Court Dec. 5, 2019.
According to a press release from the US Attorney’s Office in Utah, Fairbanks is suspected of creating a scheme to defraud investors using materially false and fraudulent pretenses, representations and promises, and omissions of material facts. He earned the trust of a woman in her 80s, and diverted at least $462,000 of her money for his personal use and benefit.
According to the indictment, Fairbanks was the founder and CEO of SupplyLine Partners, an unregistered business. The company maintains a website, which purports to provide marketing, administrative, and other business support services. It has never been registered to issue securities, the indictment alleges. Fairbanks is involved in other business entities.
Fairbanks offered and sold an investment opportunity in SupplyLine to the alleged victim and another couple. He accepted $45,500 in cash from these people, promising them a 6 percent return – or their money back.
In an effort to induce further investments, investigators allege Fairbanks also began giving investment and financial to the older woman. She opened a joint personal checking and savings account with the suspect using her money.
The indictment alleges the victim believed Fairbanks would help manage her finances, deal with her finances in her best interest, not put her money at substantial risk, and help her write checks.
Fairbanks faces up to 20 years in prison for each of the wire fraud counts (two counts), up to five years for each count of securities fraud (two counts), and up to 10 years for the money laundering count.