HONOLULU – Kevin Alan Loux, owner of the Loux Financial Group, pleaded guilty in U.S. District Court Tuesday to federal wire fraud charges.
The 63-year-old licensed independent life insurance and annuity broker, who operated in Hawaii and California, admitted he stole $463,000 from five victims between 2009 through 2014.
Headquartered in vacation rentals in San Diego County, California and Princeville, Kauai, Loux targeted senior citizens who were existing clients in his Ponzi Scheme.
He offered his clients, who were in Hawaii, California, Arizona, Tennessee and Illinois, high-yield investments in a “brokerage account program” as well as high-yield annuities with other insurance companies.
He spent their money to enhance his lifestyle and to gamble.
FBI Special Agent Tom Simon was the lead investigator in the case, which was referred to the FBI by the State of Hawaii Department of Commerce and Consumer Affairs Securities Enforcement Branch, and worked jointly with that agency.
Simon said: “Adults should have candid conversation with their parents and grandparents to gain a better understanding of their financial position. These conversations may uncover fraudulent activity targeting the elderly.”
Loux will be sentenced January 12, 2015, in U.S. District Court and could face up to 20 years in federal prison.