Six people previously found guilty of attempting to defraud almost 70 investors
of more than $17 million through the Northeast Ohio KGTA Ponzi scheme
were sentenced on October 20th. The securities fraud attorneys at Meyer Wilson
began reporting on the activities of these fraudsters since investigations into their practices began, and represented several
victims of KGTA Petroleum Ltd.’s Ponzi scheme.
Following the sentencing, FBI Special Agent in Charge Stephen D. Anthony said,
“These defendants callously preyed on the desires of many to make
wise investments for a secure future and duped them out of their life
savings. Fraudsters such as these remain a top priority of the FBI.”
United States Attorney for the Northern District of Ohio Carole S. Rendon
commented on their activities, saying,
“These defendants swindled people out of millions of dollars so they
could live extravagant lifestyles. This was flat-out fraud. The defendants
knew fully that they were stealing from the investors.”
Two former stockbrokers, Jeff Gainer and Jerry Cicolani, will spend 52
months and 57 months respectively in federal prison. Both were employed
by the Cleveland-based brokerage firm Primesolutions Securities, Inc.
when they participated in the Ponzi scheme.
Meyer Wilson has successfully represented several victims in FINRA arbitration
cases to recover the losses they suffered as a result of the KGTA fraud.
During the sentencing hearing, the former managing partner of Primesolutions
Securities, Inc. told Judge Nugent that his firm was forced to close after
losing two cases in arbitration. The victims in those cases were represented
by Meyer Wilson.
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