Welcome to the Department of Justice, Iowa Attorney General Tom Miller

For immediate release - Wednesday, March 19, 2003.

Contact Bob Brammer - 515-281-6699.
(Contact person for Iowa Insurance Division is Scott Kinney - 242-5179)

Statement of the Iowa Attorney General's Office

Criminal Charges Filed
Naming Terry G. Frey of Cedar Rapids
Wednesday, March 19, 2003

Statement of Iowa Attorney General Tom Miller: 

Criminal charges were filed by the Attorney General's Office Tuesday in Linn County District Court naming Terry G. Frey of Cedar Rapids (date of birth 7-4-55). The charges are:

  • Ongoing Criminal Conduct, a class B felony punishable by up to 25 years in prison. According to the trial information filed Tuesday, Frey on a continuing basis misappropriated funds of a client totaling approximately $167,462.

  • Money Laundering, a class C felony punishable by up to 10 years in prison and a fine of $1000 to $10,000 (or twice the value of the property involved, whichever is greater.)

  • Theft in the Second Degree, a class D felony punishable by up to 5 years in prison and a fine of $750 to $7500. The trial information alleged theft from another client.

  • Securities Fraud, a class D felony (up to 5 years, $750-7500). The trial information alleged Frey held himself out to be a licensed viatical broker when he was not.

  • Unregistered Broker-Dealer or Agent, a class D felony (up to 5 years, $750-7500.)

Frey turned himself in Tuesday afternoon and had his initial appearance and arraignment before Judge Thomas Horan. Frey was released on his own recognizance under supervision of the Dept. of Correctional Services Pretrial Release Division. Trial was set for September 8.

In January and February, the State Insurance Division issued cease-and-desist orders and a statement of charges alleging that while working as an insurance agent Frey misappropriated funds of a client and engaged in improper sales practices.

On January 23 a search warrant was executed in the criminal matter at 413 Parkland Drive SE in Cedar Rapids, the residence and office of Terry Frey, doing business as Partners 4 Life, Inc.

State prosecutors also filed a "restitution victim lien" in Linn County District Court Tuesday, to preserve the assets of Terry G. Frey for payment of restitution. The filing said the State alleges $167,462 was taken from one client and $5,000 from another by Frey's criminal activities, and that the State will seek restitution. The lien listed property including Frey's home at 413 Parkland Drive SE in Cedar Rapids, office equipment, and checking and savings accounts and other financial assets.

The matter is being coordinated by the Attorney General's Office in conjunction with the Linn County Attorney's Office.

State agencies involved in the investigation include the State Insurance Division of the Iowa Dept. of Commerce, and the Division of Criminal Investigation of the Iowa Dept. of Public Safety.

Agencies assisting in the matter also include the Linn County Sheriff's Office, the Cedar Rapids Police Dept., and the Iowa State Patrol.

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