BOONE COUNTY — A Zionsville man is accused of misusing $275,000 from a long-time friend while acting as an investment advisor, even though the man was not registered to handle investments in Indiana.
Kirk Crossen is charged with four felonies, including:
- Investment Fraud
- Theft Value of property > $50k
- Fraudulent or Deceitful Act in the Offer, Sale or Purchase of a Security
- Unregistered Investment Adviser
An investigation by the Indiana Secretary of State Securities Division found Crossen solicited money from a friend who lives in Texas.
The state alleges Crossen used investment funds to gamble and for personal use, including housing, dining and golfing.
Crossen also failed to notify his friend that he was no longer registered to provide investment advice, court documents allege.
Records show Crossen previously worked as a financial advisor at Morgan Stanley and Raymond James & Associates, and had 27 years of experience in the securities industry.
He was discharged from Raymond James & Associates in November 2023 and has not been with a brokerage since, according to the Financial Industry Regulatory Authority.
The victim first lost $25,000 after Crossen invested the funds into “extremely risky investments,” court records say.
Crossen then suggested his friend transfer money to Crossen’s Schwab account, and Crossen vowed to use a “very conservative strategy,” prosecutors allege.
The victim wired money to Crossen in May, June and September of 2024.
“All $250,000 of the money wired to Crossen was lost,” court documents allege. “It was misused through improper investments, personal gambling and/or improper personal use.”
Court documents allege Crossen lured his friend to invest money under the guise of doing so with a “conservative strategy.”
“This is misleading and presented a false impression,” wrote the investigator with the Indiana Secretary of State Securities Division in court documents. “Using (the victim’s) money for personal use and trading in a high-risk fashion is indicative of intent to commit fraud and theft.”
After the friend realized his money was gone, he texted Crossen:
- Alleged victim: Is this really happening? Can you send my remaining fund back tomorrow?
- Crossen: I have no money. I lost everything.
- Alleged victim: You lost all of MINE? What?
- Crossen: Yes.
Crossen has a company called Crossen Capital Investments LLC; however, the company and Crossen are not registered to buy or sell securities with the SEC or the Indiana Securities Division.
According to the Financial Industry Regulatory Authority (FINRA), Crossen is currently suspended from acting as a broker for failing to comply with an arbitration award or settlement agreement.
He’s also facing another pending regulatory action, according to FINRA:
“Crossen was named a respondent in a FINRA complaint alleging that he borrowed a total of $400,000 through three loans from a customer,” read the FINRA website. “The complaint alleges that Crossen's member firm's written supervisory procedures (WSPs) did not allow Crossen to borrow from the customer, a trust, because neither it nor its beneficial owner was an immediate family member. At the time of the loans, the beneficial owner was 84 years old and suffering from diminished capacity. The complaint also alleges that Crossen concealed the loans from the firm by falsely stating on annual compliance questionnaires that he had not borrowed money from customers.”
WRTV Investigates contacted Crossen’s attorney for comment, and we are waiting on a response.
Court records show a warrant was issued for Crosen’s arrest on November 21.
No court date has been set.
