George McKown, Securities Fraud and Wire Fraud, Indiana 2021

George McKown, 70, of Indianapolis, Indiana, has been found guilty of conspiracy to commit securities fraud and wire fraud. McKown was convicted after a 5-day jury trial before United States District Court Judge Philip P. Simon.

According to court documents, McKown and his co-defendant, Richard Gearhart, sold securities to investors who put their traditional retirement accounts, pensions, annuities, and cash into Asset Preservation Specialists. McKown and Gearhart promised investors a six to eight percent return on their investment and ensured liquidity.

However, McKown and Gearhart provided investors with fraudulent monthly statements showing positive returns on their investments when, in reality, they were actually losing money. The defendants also used investors’ money to fund various business ventures in which McKown, Gearhart, or both had an interest, without the investors’ knowledge or consent.

The loss to the investors was over five million dollars. McKown’s sentencing is scheduled for February 8, 2022. Any specific sentence to be imposed will be determined by the judge after consideration of federal sentencing statutes and the Federal Sentencing Guidelines.

This case was the result of a joint investigation by the United States Postal Inspection Service, the Federal Bureau of Investigation, and the Indiana Secretary of State Securities Division. The case is being prosecuted by Assistant U.S. Attorneys Toi D. Houston and Thomas M. McGrath.

McKown’s co-defendant, Richard Gearhart, pled guilty in July 2021 and was sentenced to five years in prison and ordered to pay more than $5.3 million in restitution.

McKown, a 70-year-old Indianapolis man, was convicted of conspiracy to commit securities fraud and wire fraud. He faces sentencing on February 8, 2022, and could face a prison sentence determined by the judge after considering federal sentencing statutes and guidelines.

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