Ohio Men Indicted for Allegedly Defrauding Investors Out of $17 Million
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 Cicolani, visit:
- Criminal Charges Filed in Ohio Ponzi Scheme Against KGTA Principal Ken Grant
- Criminal Charges Filed Against Former Ohio Broker Jerry Cicolani in KGTA Ponzi Scheme
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 extremely wary.
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.