A 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.