Copley’s Kenneth A. Grant, 66, has been hit with federal charges for a colossal investment fraud scheme that authorities say defrauded nearly 70 investors out of $17 million.
According to the U.S. Attorney’s Office for the Northern District of Ohio, Grant was charged with conspiracy to commit wire fraud and securities fraud, as well as money laundering. He and another individual operated KGTA Petroleum, Ltd., a company that falsely claimed to earn profits from buying and selling crude oil and refined fuel products.
Grant promised investors guaranteed monthly payments up to 5 percent or annual returns of approximately 60 percent. However, he never filed necessary documentation with the Securities and Exchange Commission and knew these promises were unfounded. Instead, he used investor money for personal luxury items such as a Mercedes Benz and high-end property.
Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, warned that “so-called investment gurus who make promises of big guaranteed returns should send up red flags.” FBI Special Agent in Charge Stephen D. Anthony emphasized that fraudsters like Grant are a top priority for the agency.
The IRS-Criminal Investigations unit played a critical role in bringing this case to light, utilizing its forensic accounting skills to help put an end to white-collar crime. Assistant U.S. Attorney Mark S. Bennett and Special Assistant U.S. Attorney Derek Kleinmann are handling the prosecution following investigations by the FBI and IRS.
Grant’s sentencing will depend on the federal sentencing guidelines, including any prior criminal record, his role in the offense, and the characteristics of the violation. It is important to note that a criminal information is only a charge and does not prove guilt; defendants are entitled to a fair trial where the government must prove guilt beyond a reasonable doubt.
Related Federal Cases
Key Facts
- State: Ohio
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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