Canby man faces charges
A Canby man has been arrested on multiple charges, including securities fraud.
In the aftermath of a Clackamas County Sheriff's Office investigation, James Robert Frackowiak, 43, of Canby, was arrested on multiple charges of aggravated theft and securities fraud.
Frackowiak is accused of a scheme involving the sale of allegedly fraudulent investments in a "Frack Income Fund" that cost an elderly Clackamas County couple hundreds of thousands of dollars. Detectives are seeking possible additional victims.
According to the CCSO, the case began in April 2017. The elderly couple's granddaughter approached the Clackamas County Sheriff's Office with concerns that her grandparents were being defrauded by Frackowiak through personal loans and life-insurance policy purchases and sales.
Detectives began an extensive review of documents -- and learned the following:
- James Frackowiak befriended the victim couple in 2007.
In addition to founding the now-defunct Frack Burger restaurant chain, Frackowiak was at the time a local insurance agent operating under the business names Plan It Financial and Frack Insurance. (Frackowiak's insurance license through the State of Oregon was revoked on Feb. 10, 2017.)
- Starting in 2007, Frackowiak began selling the victim couple a series of insurance policies, which the couple would buy and then surrender. The victim couple would lose money when surrendering these policies while Frackowiak would gain a large commission.
- In 2013, Frackowiak created the Frack Income Fund, LLC. The Income Fund promised up to an 8 percent rate of return over a five-year span.
The victim couple surrendered an insurance policy to invest in the fund and also made several additional loans to Frackowiak.
- Detectives believe Frackowiak used this money inappropriately on his businesses, including Plan It Financial and Frack Burger, both of which closed in 2016, among other uses.
During the investigation, Sheriff's Office detectives learned that Frackowiak had significant personal liens, personal judgments and tax liens.
On April 2, 2018, James Frackowiak was arrested and booked on eight counts of aggravated theft and three counts of securities fraud. His bail was set at $150,000.