The Kirk Crossen investment fraud case shows how a trusted adviser can betray investors’ confidence. Investment fraud happens when someone tricks others out of their money with false promises and misleading information.
In this case, Crossen faces four felony charges related to taking $275,000 from a long-time friend. He promised to invest the funds conservatively, but investigators say he quickly lost the first $25,000 in high-risk options trades. He then allegedly used another $250,000 for gambling and personal expenses such as housing, dining, and golf between May and September 2024.
This case underscores the importance of checking an adviser’s qualifications and registration status before trusting them with your savings. Neither Crossen nor his company, Crossen Capital Investments LLC, was registered as an investment adviser at the state or federal level.
The Indiana Secretary of State’s Securities Division began investigating after discovering that Crossen misrepresented investment risks and lied about his credentials. According to investigators, he later admitted in text messages that he had lost all of the invested money.
Crossen previously worked for major firms such as Morgan Stanley and Raymond James & Associates over a 27‑year career in the securities industry. He stopped registering with brokerage firms in November 2023. Before an arrest warrant was issued on November 21, 2025, FINRA had already suspended him for failing to comply with an arbitration award and for alleged misconduct involving client loans totaling more than $400,000.
This story examines what happened, how the alleged scheme unfolded, and what it means for investors. It illustrates how one person’s choices can affect not only a single client but confidence in the broader investing community.
Charges Against Kirk Crossen
Table of Contents
Investment Fraud
One of the four felony charges against Crossen is investment fraud. Authorities allege that he solicited $275,000 from a long-time friend using misrepresentations and false statements about his investment strategy.
Although he described the approach as “conservative,” police and regulatory reports indicate he pursued high‑risk options trading instead. The initial $25,000 was allegedly lost almost immediately. Investigators say much of the remaining funds were never invested as promised but were instead diverted to unauthorized uses, making this a clear example of fraud and misrepresentation in connection with securities.
Theft of Property
Crossen is also charged with theft of property. Prosecutors claim he misappropriated a total of $275,000 in investor funds for his own benefit.
Between May and September 2024, the victim allegedly sent him three payments totaling $250,000 in addition to the initial $25,000. Investigators say these funds were not used in line with any legitimate investment agreement but were instead spent on personal expenses and gambling. This alleged conduct falls under financial crime and embezzlement, focusing on taking assets that did not belong to him.
Fraudulent Acts in Securities
The theft allegations are closely tied to accusations of fraudulent acts in connection with securities. Authorities say Crossen engaged in deceptive practices while offering or managing what he characterized as investments.
He is accused of:
- Promoting a “conservative” investment strategy while actually using high-risk trades
- Failing to disclose that he and his firm were unregistered
- Making misleading statements about risks and his credentials
Text messages obtained by investigators reportedly show Crossen admitting that he lost the entire investment. These facts support claims of financial misrepresentation and violations of securities laws requiring honesty, transparency, and proper disclosure.
Unregistered Investment Adviser
Another major issue in the case is that Crossen allegedly acted as an unregistered investment adviser. Neither he nor Crossen Capital Investments LLC was registered with the SEC or the Indiana Securities Division.
Operating without proper registration meant he was not subject to the usual regulatory oversight and compliance checks designed to protect investors. Failing to disclose this status to clients is itself a serious omission and a key factor in the charges against him.
Misuse of Investment Funds
Allegations and Investigation
The Indiana Secretary of State’s Securities Division is leading the investigation. Authorities allege that Crossen:
- Solicited $275,000 from a Texas resident under false pretenses
- Misrepresented his strategy and credentials
- Misused the majority of the funds for personal purposes
Evidence gathered so far, including testimony and electronic communications, is cited as supporting an intent to commit fraud and theft.
Personal Expenses and Gambling
According to the investigation, instead of investing the money as promised, Crossen used significant portions of the funds for:
- Housing and living expenses
- Dining and entertainment
- Golf
- Gambling
None of these uses were authorized or disclosed to the investor. This alleged diversion of funds shows a serious breach of fiduciary duty and a lack of transparency and accountability in handling client money.
Crossen’s Background
Work History
Crossen spent approximately 27 years in the securities industry, working as a financial adviser for firms such as Morgan Stanley and Raymond James & Associates. During that time, he:
- Managed client portfolios
- Conducted market analysis
- Provided financial planning and wealth management services
He also established Crossen Capital Investments LLC, which he presented as a vehicle for investment and capital management.
Discharge and Unregistered Status
In November 2023, Raymond James & Associates discharged Crossen from his position. Following that discharge, he did not register with any other brokerage firm, meaning he could no longer legally act as a registered broker or investment adviser.
FINRA subsequently suspended him for failure to comply with an arbitration award or settlement. Separately, regulators allege that he borrowed approximately $400,000 from a customer through three loans, involving a trust with an 84‑year‑old beneficial owner, and that he concealed these loans from his firm and misstated facts on compliance questionnaires.
Crossen Capital Investments LLC also remains unregistered, adding to the list of regulatory concerns.
Alleged Victim Losses
Initial Investment Loss
The initial $25,000 investment was allegedly placed into high‑risk options trades, despite Crossen’s representations that the strategy would be conservative. Investigators say this amount was quickly lost and never recovered.
Additional Funds and Alleged Misuse
Following the initial loss, the investor allegedly made three additional payments totaling $250,000 between May and September 2024. According to authorities, none of this money was properly invested, and it was instead misused for personal expenditures and gambling. The investor is therefore alleged to have lost the entire $275,000.
Regulatory Actions and Legal Proceedings
FINRA Suspension and Regulatory Action
FINRA has taken regulatory action against Crossen, including suspending him from acting as a broker. The actions center on:
- Failure to comply with an arbitration award or settlement
- Allegedly borrowing large sums ($400,000) from a customer without proper disclosure
- Providing false or misleading answers on firm compliance questionnaires
These regulatory findings highlight serious misconduct and reinforce the concerns raised in the Indiana case.
Arrest Warrant and Court Status
An arrest warrant for Crossen was issued on November 21, 2025, based on the four felony charges:
- Investment fraud
- Theft of property
- Fraudulent acts in connection with securities
- Acting as an unregistered investment adviser
As of December 3, 2025, no specific court date has been publicly set in the materials summarized here. The case remains active in the legal system, and further developments are expected as proceedings continue.
Conclusion
The case against Kirk Crossen is a stark reminder of the risks investors face when dealing with unregistered or misrepresenting advisers. Authorities allege that he:
- Misrepresented a high‑risk strategy as conservative
- Acted without proper registration or oversight
- Diverted $275,000 in client funds to personal use and gambling
- Misled regulators and his own firm about key facts
For investors, the key lessons are clear:
- Always verify that an adviser and their firm are properly registered.
- Check regulatory records (such as FINRA’s BrokerCheck and state securities regulators).
- Be wary of promises of “safe” or “conservative” strategies that are not clearly documented and explained.
Staying informed and performing thorough due diligence are essential steps to protecting your savings and maintaining confidence in the investment process.
