The Region - News from Feb. 20, 1986

Charges of defrauding investors out of nearly $500,000 were made against Russell A. Phipps, 43, a stockbroker who formerly worked at Newhard, Cook & Co. Inc. in Long Beach. Phipps was accused of mail fraud, interstate transportation of property taken by fraud, and federal securities fraud in an 18-count indictment returned by a federal grand jury in Los Angeles. FBI agents arrested Phipps in Sunnyvale at his current business, Interstate Asset Management. The indictment charged that Phipps gained the confidence of investors, collected at least $470,000 from them from December, 1980, to January, 1984, and diverted $414,000 to unauthorized use, including his own personal use. Phipps pleaded innocent to the charges.