A former vice president at Harbor Financial, an insurance brokerage in Baltimore, Md., was indicted by a federal grand jury in connection with an alleged scheme to defraud his clients of more than $838,350.

Ralph Edward Thomas Jr., age 52, a financial advisor who has a Maryland insurance license to sell life and health insurance and variable annuities, was charged with mail fraud, according to United States Attorney for the District of Maryland Rod J. Rosenstein, Special Agent in Charge Richard A. McFeely of the FBI and Chief James W. Johnson of the Baltimore County Police Department.

Between August 2000 through February 2004, Thomas worked Harbor Financial, a subsidiary of Harbor Bank which offered brokerage, insurance products, and financial planning. From February 2004 through July 2010, Thomas was employed as a financial adviser by Wells Fargo Advisors, officials said.

In December 2001, Thomas met “KL,” the trustee of a $3 million settlement received on behalf of her daughter, who suffered birth injuries, and persuaded “KL” to move the trust account to Harbor Bank. Each month, the annuity paid funds directly into the Harbor Bank trust account, according to the indictment.

Thomas allegedly stole about $756,963.98 from the trust account for “KL’s” daughter by withdrawing money from the Harbor Bank trust account and purchasing cashier’s checks which he deposited into his personal bank accounts, prosecutors said. Thomas allegedly used the funds to pay his personal credit card accounts and other personal expenses.

On July 29, 2009, Thomas is accused of using $100,000 stolen from the Harbor Bank trust account to purchase a home in Reisterstown, Md., according to the indictment.

Between June 2006 and May 2009, Thomas initiated three mortgages in the name of “KL” on her personal residence, without her permission, forging her name on mortgage documents and other paper work, the indictment indicates. The proceeds of the mortgages were deposited into the Harbor Bank account and were allegedly withdrawn by Thomas who diverted the funds to his personal use. “KL” incurred $26,886.36 in losses and expenses as a result of these three mortgages, the indictment says.

In another alleged incident, in January 2006, Thomas became the financial advisor for “LM,” a retired Baltimore resident who oversaw the disbursements from an annuity that was shared by “LM” and her sister, an 85-year-old who suffered from dementia. LM allegedly allowed Thomas to manage the money in the annuity. Thomas is accused of withdrawing $75,000 from “LM’s” account and using $42,000 of those funds for his personal benefit, including purchasing cashier’s checks made payable to credit card companies where Thomas held accounts.

Prosecutors are asking the court to force Thomas to forfeit the proceeds of the alleged scheme, including investment accounts owned by Thomas, the home in Reisterstown, and luxury automobiles.

Thomas faces a maximum sentence of 20 years in prison and a $250,000 fine for mail fraud. No court appearance has been scheduled yet.