United States Attorney
Northern District of Ohio

Gregory A. White
United States Attorney

Justin J. Roberts
Assistant U.S. Attorney
(216) 622-3958

Gregory A. White, United States Attorney for the Northern District of Ohio, today announced that an Information was filed charging Thomas A. Letzler with one count of Securities Fraud.

Letzler, age 66, resides at 4240 Springdale Road, Stow, Ohio.

According to the Information, Letzler was a Financial Representative at Northwestern Mutual Financial Network, a broker-dealer. Letzler worked out of a Northwestern Mutual office located at 202 Montrose West Avenue, Suite 100, Akron, Ohio.

The Information alleges that from in or about May 27, 2003, through on or about March 14, 2006, Thomas A. Letzler, the defendant, promoted and sold securities to at least three different clients, resulting in thousands of dollars of overall investor loss.

According to the Information, in order to accomplish the securities fraud scheme, Letzler promoted and sold, among other things, Real Estate Investment Trusts (“REITs”) and other investment contracts. To induce clients to participate in his investment program, Letzler falsely represented that the investor funds would be invested and used to finance construction projects and purchase mortgages. Letzler fraudulently represented that the investments would generate rates of return of up to 8 percent. In one instance, Letzler told an investor that the investment would triple in three years, with minimal risk. Letzler knew that the investor proceeds would not be used in that manner, but rather used to pay his personal debts and expenses and fund other interests he controlled.

The Information also alleges that Letzler would falsely represent that the investors were achieving returns on their investments, both orally and in writing, causing investors to defer their compensation and lull them into the belief that their investments were making money. In order to conceal the fraudulent scheme, Letzler provided investors fictitious letters and account statements, through the U.S. mails, reflecting positive investment performance when, in truth and in fact, none of the money was ever invested as stated. In order to lend legitimacy to the scheme, Letzler prepared these account statements on Northwestern Mutual letterhead, signed Thomas A. Letzler, Financial Representative. At least one investor never received a written statement reflecting investment activity on their behalf.

According to the Information, from in or about May 27, 2003, to on or about March 14, 2006, the defendant charged and received approximately $92,500 in investor monies.

The sentence in this case, upon conviction may be determined by the Court after consideration of the Federal Sentencing Guidelines, which depend upon a number of factors unique to each case, including the defendant's prior criminal record, if any, the defendant's role in the offense and the unique characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.

This case is being prosecuted by Assistant U.S. Attorney Justin J. Roberts, following investigation by the Cleveland office of the Federal Bureau of Investigation.

An Information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.