Richfield, OH – In a shocking case of corporate greed, Jerry A. Cicolani, Jr., a 51-year-old former registered representative with PrimeSolutions Securities, Inc., has been charged with selling unregistered securities that left dozens of investors with a staggering loss of $7 million.
According to the information, Cicolani worked tirelessly to recruit investors to KGTA Petroleum, Ltd., a company operated by Kenneth A. Grant and others. Grant and his cohorts marketed KGTA as a petroleum company that earned profits by buying and reselling various crude oils and refined fuel products. However, the scheme was a ruse, designed to swindle unsuspecting investors out of their hard-earned cash.
Cicolani, who was a licensed registered representative with PrimeSolutions Securities, Inc., concealed his outside business interests from his employer and had his commissions from KGTA paid to outside entities. The unregistered securities issued by KGTA were required to be filed with the Securities and Exchange Commission, but Cicolani and his cohorts failed to do so, leaving investors high and dry.
As a result of Cicolani’s efforts, 39 investors collectively lost $7 million from their investments with KGTA. Cicolani raked in approximately $5 million in commission fees, a staggering sum that highlights the extent of his greed. In a related case, Kelly C. Hood, 36, of Naples, Florida, was charged with structuring commission payments made to himself and Cicolani to evade bank reporting requirements.
This case is a stark reminder of the importance of regulatory oversight in the financial industry. The Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigations conducted a thorough investigation, which led to the charges against Cicolani and Hood. Assistant U.S. Attorney Mark Bennett and Special Assistant U.S. Attorney Derek Kleinmann are prosecuting the case.
If convicted, Cicolani faces a sentence determined by the court after consideration of the Federal Sentencing Guidelines. The sentence will depend on a number of factors, including Cicolani’s prior criminal record, his role in the offense, and the unique characteristics of the violation. The statutory maximum sentence will be applied in all cases.
Cicolani’s case is a stark reminder that corporate greed and deceit can have devastating consequences for innocent investors. The prosecution of Cicolani and Hood sends a strong message that those who engage in such activities will be held accountable for their actions.
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Key Facts
- State: Ohio
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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