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Former insurance agent sentenced to 60 months for defrauding at least four elderly investors out of $284,000

June 20, 2019

Salem — James Frackowiak was sentenced to 60 months in prison and ordered to pay restitution by Clackamas County Circuit Court Judge Todd L. Van Rysselberghe for defrauding at least four elderly investors out of approximately $284,000.

Frackowiak targeted former insurance clients and sold them interests in the Frack Income Fund, LLC, promising returns of up to 9 percent. He mislead victims by failing to disclose that the fund consisted of his personal debts and had no potential for generating the promised returns.

The Oregon Division of Financial Regulation discovered the scheme after receiving a complaint from one of the victims about Frackowiak’s insurance practices. The investigation revealed Frackowiak was withholding and combining client insurance premium payments. The division revoked Frackowiak’s insurance producer license in 2017 and fined him $14,000.

The investigation into securities fraud began that same year. The division’s enforcement team worked with the Clackamas County Sherriff’s office and Clackamas County District Attorney’s Office on the case.

“Collaboration at all levels of government service is essential for cases like this,” said Andrew Stolfi, division administrator. “Before making any investment, we encourage Oregonians to do their homework, ask plenty of questions, and be suspicious of offers that appear too good to be true.”

Oregonians are encouraged to make sure financial service agents and investment products are legally registered with the state before signing any agreement. For more information and a list of steps to take before investing, visit our investments page.

For more resources to protect yourself from financial fraud visit dfr.oregon.gov/financial or contact our advocates at 888-877-4894 (toll free).

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About DCBS: The Department of Consumer and Business Services is Oregon's largest business regulatory and consumer protection agency. For more information, go to www.dcbs.oregon.gov.

About Oregon DFR: The Division of Financial Regulation is part of the Department of Consumer and Business Services, Oregon’s largest business regulatory and consumer protection agency. Visit www.dcbs.oregon.gov and www.dfr.oregon.gov.


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Press questions

Brad Hilliard
503-947-7873
brad.hilliard@oregon.gov

Mark Peterson
503-947-7868
mark.peterson@oregon.gov​​​​​​​​​​​

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