Northeast Ohio investment adviser Geoffrey W. Nehrenz (CRD# 4301019) has been sentenced to nearly five years in prison after allegations of defrauding investors out of roughly $5.6 million. Nehrenz, 37, was sentenced by United States District Court Judge Christopher Boyko to serve a total of 55 months. He was also ordered to pay $5.6 million in restitution after pleading guilty to two counts of money laundering and one count of wire fraud.
Our securities fraud lawyers launched an investigation into claims against Nehrenz last year after allegations stated that he convinced at least 19 customers to invest roughly $7 million in a hedge fund. According to the claims made against him, Nehrenz allegedly used most of the money for his own expenses rather than investing it as he promised to his customers.
Nehrenz allegedly promoted the investments through Keystone Capital Management, LLC, a Uniontown-based investment adviser company. The company was not registered with the Securities and Exchange Commission (SEC).
Nehrenz allegedly used the hedge fund to falsely represent to customers that their assets would be pooled and invested into large and mid-cap publicly traded U.S. securities. Instead, the funds were allegedly used to pay business expenses, promote the investment scheme, and make high risk trades with overseas and domestic private placement vehicles.
If you lost money investing with Northeast Ohio investment advisor Geoffrey W. Nehrenz, call our securities fraud attorneys at Meyer Wilson for a free consultation.