Five Ohio men are behind bars after swindling about 70 investors out of $17 million through a rigged oil investment scheme, federal prosecutors confirmed. Kenneth Grant, Thomas Abdallah, Jerry Cicolani, Jeffrey Gainer, and Mark George were sentenced to prison terms ranging from 21 to 92 months for their roles in the conspiracy. Kelly Hood, formerly of Richfield, avoided prison but was handed one year of home confinement and probation.
Grant, of Copley, received 92 months behind bars. Abdallah, of Brunswick, was sentenced to 82 months. Cicolani, formerly of Richfield, got 57 months; Gainer, also of Copley, received 52 months. George, of Independence, was sentenced to 21 months. All six previously pleaded guilty. Collectively, they were ordered to pay more than $17 million in restitution.
The scam centered on KGTA Petroleum, Ltd., a shell company owned and operated by Abdallah and Grant. The duo pitched it as a lucrative venture profiting from buying and reselling crude oil and refined fuel. Investors were promised returns of up to 60% annually—or 5% monthly—with supposedly guaranteed returns backed by real fuel deals. None of it was real.
Court documents reveal the defendants never filed with the Securities and Exchange Commission and had no actual contracts to sell oil. Instead, the $31 million pulled from investors between 2010 and 2014 was funneled into luxury cars, boats, and high-end real estate. A Mercedes-Benz, mortgage payments on luxury homes, and personal spending raged while investors were fed lies.
“These defendants swindled people out of millions of dollars so they could live extravagant lifestyles,” said U.S. Attorney Carole S. Rendon. “This was flat-out fraud. The defendants knew fully that they were stealing from the investors.” FBI Special Agent in Charge Stephen D. Anthony added they “callously preyed on the desires of many to make wise investments for a secure future and duped them out of their life savings.”
IRS Criminal Investigation’s Cincinnati chief, Kathy A. Enstrom, emphasized the devastation: “When you knowingly mix deceit and trickery into the financial well-being of individuals, you create a recipe for devastation that could last a lifetime.” The case was prosecuted by Assistant U.S. Attorneys Mark S. Bennett and M. Kendra Klump, following an investigation by the FBI and IRS-CI.
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Key Facts
- State: Ohio
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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