Thomas Abdallah, Mark George, and Jeffrey Gainer have pleaded guilty to their involvement in the large Akron-based Ponzi scheme involving the company KGTA Petroleum Ltd., a purported company that sold oil and fuel. All three were indicted back in June 2015 for conspiracy, wire fraud, money laundering, and selling unregistered securities.
This scheme began as early as 2010, and the indictment stated that approximately $31 million was fraudulently collected from 70 investors, who were promised they would receive 60 percent annual returns. In reality, the investment scheme was a sham. Grant and others obtained about $31 million through false and fraudulent pretenses, knowing KGTA did not have agreements in place to sell oil and fuel, and that investors would not earn these inflated returns on their investments.
Meyer Wilson has been reporting on this case from the beginning, and represents numerous victims of the KGTA fraud and is pursuing claims on their behalf. To read more about the individuals involved, visit:
- Meyer Wilson's Investigation into the KGTA Investment Scam Continues as the SEC Files a Lawsuit in Ohio to Shut Down the Ponzi Scheme
- Update from Ohio Investment Fraud Attorney Representing Victims of KGTA Ponzi Scheme
- 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
- Ohio Men Indicted for Allegedly Defrauding Investors Out of $17 Million
- Jerry Cicolani, Jr. Issued SEC Order of Administrative Proceedings
- Jerry Cicolani and Kelly Hood Submit Offer of Settlement of SEC Charges
Gainer was a stockbroker registered at the time with Primesolutions Securities, Inc., a Cleveland-based brokerage firm. The indictment stated that Gainer recruited investors to KGTA, which earned him undisclosed commissions and cash bonuses every month. Gainer was permanently barred from the securities industry by the Financial Industry Regulatory Authority (FINRA) the same month he was indicted.
Gainer, Abdallah, and George will be sentenced on October 4, 2016 by U.S. District Judge Donald Nugent.