Thomas Abdallah, Mark George, and Jeffrey Gainer have pleaded guilty to
their involvement in the large Akron-based Ponzi scheme involving the
company KGTA Petroleum Ltd., a purported company that sold oil and fuel.
All three were indicted back in June 2015 for conspiracy, wire fraud,
money laundering, and selling unregistered securities.
This scheme began as early as 2010, and the indictment stated that approximately
$31 million was fraudulently collected from 70 investors, who were promised
they would receive 60 percent annual returns. In reality, the investment
scheme was a sham. Grant and others obtained about $31 million through
false and fraudulent pretenses, knowing KGTA did not have agreements in
place to sell oil and fuel, and that investors would not earn these inflated
returns on their investments.
Meyer Wilson has been reporting on this case from the beginning, and represents
numerous victims of the KGTA fraud and is pursuing claims on their behalf.
To read more about the individuals involved, visit:
Gainer was a stockbroker registered at the time with Primesolutions Securities,
Inc., a Cleveland-based brokerage firm. The indictment stated that Gainer
recruited investors to KGTA, which earned him undisclosed commissions
and cash bonuses every month. Gainer was permanently barred from the securities
industry by the Financial Industry Regulatory Authority (FINRA) the same
month he was indicted.
Gainer, Abdallah, and George will be sentenced on October 4, 2016 by U.S.
District Judge Donald Nugent.