Todd Wolfe, the founder of Deca Financial Services, has been sentenced to at least four years in prison and must repay $5 million after pleading guilty to charges of bank fraud and bankruptcy fraud.
Wolfe was sentenced earlier today in Indianapolis. He pleaded guilty to the charges in late January.
Wolfe was accused of diverting a $1 million investment in the company by an individual who was purchasing 5% of the company, which at its peak, employed 75. He was also charged with overstating the company’s financial position to a bank in order to have the bank raise the company’s borrowing limit, and trying to defraud the company’s creditors during the bankruptcy process. He claimed he had a $14.5 million living trust when no such trust existed, according to the indictment that was filed against him.
Deca, which operated in Fishers, Ind., collected on unpaid healthcare, student loan and financial services debts. Wolfe founded the company in 2009. It filed for bankruptcy protection in 2014. In 2012, the company was offered $2.5 million in state tax credits by the government of Indiana based on the company’s promise to create 2070 jobs by 2015.
