Former investment advisor indicted for defrauding Brentwood woman

Staff Reports • Nov 9, 2017 at 5:38 PM

A federal grand jury indicted Jay Costa Kelter, formerly known as Ignatius J. Costa, III, 48, on Wednesday on five counts of wire fraud, 16 counts of mail fraud and securities fraud.

The indictment alleged Kelter, who was affiliated with a Florida-based insurance and investment company, defrauded an elderly Brentwood woman out of about $1.4 million.

Detailed allegations set forth in the indictment included Kelter convinced the victim to open investment accounts with a discount brokerage company by falsely stating he was employed with the company.

Kelter routinely posed as the victim investor to conduct trades and transfer funds to accounts, which he personally owned or controlled. He spent thousands of the victim’s investment funds on expenditures benefitting himself and others, including purchases and payments for luxury cars such as a Mercedes, a Lamborghini and a $101,400 Bentley and paying more than $21,000 for custom jewelry.

The indictment also alleged Kelter used some of the client funds to repay other investment clients.

If convicted, Kelter faces up to 20 years in prison on each count and up to a $5 million fine. 

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