Soldier Charged With Securities Fraud
By Samantha Andersons.Anderson@krdo.com
COLORADO SPRINGS – A Fort Carson soldier is accused of a scam targeting nearly 100 soldiers.
The 4th Judicial District Attorney’s Office filed charges against US Army Staff Sergeant Delroy Henry for securities fraud, theft and forgery in court Thursday, March 26, 2010.
In a cooperative investigation by the Colorado Springs Police Department, the Colorado Department of Regulatory Agencies (DORA) Division of Securities (Div.), and the US Army Criminal Investigations Division CID (from Ft. Carson Detach) 97 victims, primarily members of the military, have been identified.
The crimes took place between May of 2005 and October of 2009.
Charges:
5 counts of Securities Fraud – Untrue Statement or Omission, a class 3 felony with a penalty range of 4 to 12 years per count 5 counts of theft, a class 4 felony with a penalty range of 2 to 6 years per count 2 counts of Forgery, a class 5 felony with a penalty range of 1 to 3 years
In early October of 2009, the US Army Criminal Investigations Division CID requested the CSPD to review the activities of a soldier operating a financial investment firm for any evidence of wrongdoing.
It was then learned that CDOS was also conducting an investigation involving SSG Henry and his company DMH Financial’s Inc.
The investigation revealed Henry was operating as an unlicensed broker-dealer and investment advisor. Henry created fraudulent periodic investment account statements for dozens of soldiers who were fraudulently induced into investing hundreds of thousands of dollars into the investment scheme.
The investors were lead to believe that financial investment accounts existed in their individual names and those customers would, when they requested, be able to withdraw funds from those accounts. In reality the accounts did not exist, customers requesting money were paid through funds collected from new customers, or they were not paid at all.
SSG Henry is currently in custody at CJC. His bond is set at $500,000.00.
We anticipate that more victims will come forward. Due to the transient nature of military service, the victims may be living or stationed in other parts of the world. If you believe you are a victim of Henry’s fraudulent actions, we ask that you please contact Detective Bjorkvist at 719-444-7549.
The next hearing is scheduled for April 19, 2010 at 8:30 in Div. 14 for a bond reduction hearing and the setting of the preliminary hearing.
