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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