Missing securities broker indicted

Missing securities broker indicted
Posted at 5:26 PM, Jan 10, 2018
and last updated 2018-01-10 19:26:38-05

Rodney Allen, 65, of Boise, the owner and president of a brokerage company known as KA Investments, LLC, was indicted for wire fraud Tuesday by a federal grand jury in Boise -- and a warrant was issued for his arrest, according to the U.S. Attorney’s Office. Allen, however, has been missing since April.

The indictment alleges Allen devised a scheme to defraud clients in both 2016 and 2017 --- obtaining their money by false pretenses and promises. The indictment alleges Allen misrepresented, in monthly statements provided to his clients, that they were earning positive returns on investments – when, in fact, clients were earning negative returns on investments, a news release from the U.S. Attorney’s Office pointed out.

“For instance, the indictment alleges that on December 6, 2016, Allen e-mailed a November 2016 monthly statement to a client (identified only as) M.F.  In the statement, Allen represented that M.F.’s account had earned 1.903 percent that month.  In reality, M.F.’s account had lost 36.01 percent,” the release stated.   

Further, according to the indictment, Allen misrepresented to his clients that he was taking between a 14 percent and 18 percent commission on investment profits.  “In truth, he was misappropriating client deposits for his personal use, regardless of profit or loss, and at a greater percentage,” the release said.    

Allen was reported missing on April 20th of last year.  

From April through September 2017, law enforcement conducted multiple searches for Allen in the vicinity of his abandoned truck that was found in a remote area near the Snake River.  Searchers even used cadaver dogs. 

But no trace Of Allen was found. 

The FBI is offering a $10,000 reward for information leading to Allen’s arrest. In addition, Crime Stoppers is offering a $1,000 reward for information leading to Allen’s arrest.