Trustee for Rep. Andy Ogles Indicted on Embezzlement and Fraud Charges
NASHVILLE — A financial trustee who managed accounts for U.S. Rep. Andy Ogles has been indicted on federal charges of embezzlement and fraud, according to court documents filed in federal district court.
The trustee, whose name was not immediately released pending arraignment, allegedly misappropriated funds from accounts under their management between 2019 and 2022. Federal prosecutors said the scheme involved the unauthorized transfer of more than $150,000 from client accounts.
Rep. Ogles, who represents Tennessee’s 5th Congressional District, confirmed through a spokesperson that he was a client of the indicted trustee but said he was unaware of any alleged criminal activity.
Details of the Charges
The indictment alleges the trustee used their position to access client funds for personal expenses and investments. Court documents indicate the defendant created false documentation to conceal the unauthorized transactions from clients and federal regulators.
Prosecutors said the trustee also allegedly submitted fraudulent reports to the Securities and Exchange Commission regarding the status of client accounts. The scheme was discovered during a routine audit conducted by federal banking regulators in early 2023.
If convicted on all charges, the defendant faces up to 20 years in federal prison and substantial financial penalties. The case is being prosecuted by the U.S. Attorney’s Office for the Middle District of Tennessee.
Impact on Ogles
A spokesperson for Rep. Ogles said the congressman is cooperating fully with federal investigators and has provided all requested financial records. The spokesperson emphasized that Ogles was a victim in the alleged scheme and had no knowledge of any wrongdoing.
“Congressman Ogles trusted this individual with his financial affairs and is shocked by these allegations,” the spokesperson said in a written statement. “He will continue to work with authorities to ensure justice is served.”
The indictment does not suggest any wrongdoing by Rep. Ogles or indicate that campaign funds were involved in the alleged scheme. Federal investigators said their focus remains on the trustee’s alleged misuse of client funds for personal gain.
Ongoing Investigation
The FBI and SEC are continuing to investigate whether additional clients were affected by the alleged fraud scheme. Federal agents executed search warrants at the trustee’s office and residence last month, seizing computers and financial records.
Prosecutors said they are working to identify all potential victims and recover stolen funds where possible. The trustee’s professional licenses have been suspended pending the outcome of the criminal case.
The case highlights concerns about financial oversight and client protection in the investment management industry. Federal regulators have increased scrutiny of smaller investment firms following several high-profile fraud cases in recent years.
The defendant is scheduled for arraignment next month in federal court. A trial date has not yet been set.
Sources: Nashville Scene, federal court documents
