Thomas Abdallah, Mark George, and Jeffrey Gainer
have been indicted for their alleged role in a $17 million Ponzi scheme involving approximately
70 investors. According to accusations, these men allegedly solicited
individuals to invest in KGTA Petroleum Ltd., an Akron-based company owned
by Abdallah and a man named Kenneth Grant who is currently awaiting sentencing
for his role in the scheme.
The men allegedly claimed that investors would receive 60 percent annual
returns on their investments, but the indictment accuses them of using
the money for their own personal expenses, such as cars and mortgages,
and not having any agreements in motion to sell oil and fuel to generate
the promised returns. State prosecutors claim that George, who was licensed
to practice law in Ohio, let Abdallah and Grant use his escrow account
to give the KGTA investments the appearance of legitimacy.
In May 2014, the U.S. Securities and Exchange Commission filed a lawsuit
in order to stop any further investments into KGTA. Since then, six individuals
have been indicted and three have entered guilty pleas.
Meyer Wilson has been reporting on this case from the beginning. To read
more about when the criminal charges were filed against Ken Grant or Jerry
According to the U.S. Attorney for the Northern District of Ohio, this
case raised red flags from the start. When investment advisors, brokers,
or individuals claiming to be financial professionals promise guaranteed
returns or returns that seem too good to be true, investors should be
Since 1999, the investment fraud lawyers at Meyer Wilson have been helping
people recover their losses caused by fraud and misconduct. If you believe
this happened to you, we invite you to contact us today for a
free evaluation to learn your legal rights and options.