On Tuesday, federal prosecutors in Cleveland filed charges against former
broker Jerry Cicolani for his participation in a
Ponzi scheme. Cicolani was a licensed stockbroker with PrimeSolutions Securities, Inc.,
a Cleveland-based brokerage firm, up until May 2014.
He has been charged with the sale of unregistered securities and structuring.
The securities fraud attorneys at Meyer Wilson have been blogging about this
Ponzi scheme since 2014. Attorney David Meyer has personally handled dozens of investment
fraud cases against former broker Jerry Cicolani when we was with his
prior brokerage firm,
You can get more background on the KGTA case here:
According to court filings, Cicolani recruited investors to invest in KGTA Petroleum, which was operated
by Ken Grant and others. Cicolani received approximately $5 million in
commission fees for enlisting 39 investors, who collectively lost $7 million
from their investments with KGTA, according to the information.
The company was marketed to investors as a petroleum company that earned
profits by buying and reselling various crude oils and refined fuel products.
According to the SEC, KGTA did not generate any revenue through the purchase
and resale of oil products. Investor funds were not held in escrow, and
KGTA used funds from new investors to pay fake returns to old investors.
KGTA, in reality, is nothing more than a Ponzi scheme.
Grant was criminally charged a few months ago and plead guilty. He is awaiting
sentencing on May 20
th. We reported on Grant’s criminal charges in an
earlier blog post.