Meyer Wilson

Recovering Losses Caused By Investment Misconduct

Four Men in Ohio Convicted of Defrauding 500 Investors

David MeyerA group of Ohio men was recently convicted of scamming more than 500 people out of $10 million.

The U.S. Attorney’s Office for the Northern District of Ohio announced the conviction of four Ohio men in connection with a scheme to defraud more than 500 investors out of $10 million. Kenneth Jackson, William Schureck, Dennis Deciancio, and Daryl Dane Donohue were accused of selling unregistered securities and misrepresenting the product they claimed to develop. The conviction came after a four-week trial.

They were convicted on counts of conspiracy to launder money, conspiracy to commit wire fraud and mail fraud, making false statements, wire fraud, mail fraud, money laundering, and more. Sentencing is scheduled for September 1, 2016.

All four of the men were affiliated with a company Jackson founded in 2007, Medical Safety Solutions (MSS). Investors were allegedly induced by the men to buy stocks in MSS after false statements and fraudulent misrepresentations regarding the company and a hypodermic needle destruction device called the Sharps Terminator. The men were accused of making the following misrepresentations:

  • Claiming MSS had submitted a premarket approval application
  • Claiming the FDA approval of the Sharps Terminator was expected, despite not having even initiated the approval process
  • Claiming the Sharps Terminator had been approved by the FDA
  • Claiming the product was “market ready”

The U.S. Attorney alleged that more than 500 people were defrauded in the alleged scheme between 2007 and 2013, resulting in over $10 million in losses. Jackson and Schureck were also accused of transferring money to cover their personal expenses. Jackson allegedly used $3.3 million to gamble at Mountaineer Casino.

FBI Special Agent in Charge Stephen D. Anthony said,

“These four individuals conspired to misrepresent a product to their investors in order to make a profit. The FBI will continue efforts to bring to justice those that have duped investors out of their hard-earned money.

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