Gregory L. Crabtree, 53, of Procterville, Ohio, has been sentenced to sixty months imprisonment and $20,128,570.23 in restitution for his role in a massive investment fraud scheme that took place between 2007 and 2010.
The scheme, which was described as a “Ponzi” or investment scheme, involved Crabtree and a codefendant deceiving investors into believing that their money would be used to purchase surplus merchandise at a large discount from national retailers. The goods were then to be sold at a large profit to other wholesale buyers for resale. However, the scheme was a fraud and investors were actually paid purported returns out of funds collected from other investors.
Over fifty investors lost a combined total of almost $23,000,000, with a total of over $80,000,000 invested overall in the scheme. Crabtree pled guilty to one count of securities fraud on April 7, 2014, and cooperated with prosecutors, testifying at the trial of his co-defendant, who was acquitted.
The case was prosecuted by Assistant United States Attorneys Paul C. McCommon and G. F. “Pete” Peterman, III of the United States Attorney’s Office. The investigation was conducted jointly by the Federal Bureau of Investigation and the Internal Revenue Service/Criminal Investigation.
Crabtree’s sentence was handed down by Chief United States District Court Judge C. Ashley Royal in Athens, Georgia. The sentence reflects the severity of the crime and the significant financial losses suffered by the victims. The case serves as a reminder of the importance of vigilance and due diligence when investing in any scheme or opportunity.
The United States Attorney’s Office for the Middle District of Georgia announced the sentence, with Karen Moore directing questions regarding the matter to her office at (478/621-2606) or karen.f.moore@usdoj.gov. The sentence brings closure to the victims of the scheme and serves as a warning to those who would engage in similar fraudulent activities.
In conclusion, the sentencing of Gregory Crabtree serves as a significant milestone in the fight against securities fraud and investment schemes. The cooperation of Crabtree and the efforts of the prosecution and investigative teams have brought justice to the victims and demonstrate the commitment to protecting investors and upholding the integrity of the financial markets.
Related Federal Cases
- Georgia’s Crabtree & Donnan Hit with 85-Count Ponzi Scheme Indictment · Georgia
- FDIC Appoints Five New Members to Advisory Committee on Community Banking · Mississippi
- NY AGs Crack Down on 37 Robocall Gatekeepers · Indiana
- Toyo Tire Pleads Guilty to Auto Parts Price Fixing, Owes $120M · Kentucky
- Heroin Network Busted: Six Face Federal Charges · Georgia
Key Facts
- State: Georgia
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
🔒 Get the grimiest stories delivered weekly. Subscribe free →
Browse More
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News