Two Indiana residents have been charged with securities and wire fraud, according to a recent indictment announced by United States Attorney David A. Capp.
Richard E. Gearhart, 66, of Lowell, Indiana, and George R. McKown, 65, of Indianapolis, Indiana, are accused of conspiracy to commit securities fraud, securities fraud, and wire fraud.
According to documents filed in this case, it is alleged that the defendants sold securities to individuals who transferred their traditional IRSs, pensions, annuities, 401ks, and cash to invest with Gearhart and McKown, through Asset Preservation Specialists, Inc., after being guaranteed that their original investment was safe and sound and promising a guaranteed rate of return.
Gearhart and McKown were not registered with the SEC or the State of Indiana to sell securities.
“Gearhart had all the warning signs of a typical Ponzi scheme; he took advantage of people he knew and wasn’t registered with my office to sell securities,” said Secretary of State Connie Lawson.
Secretary Lawson also reminded all potential investors that no matter how well you think you know someone or how successful they look, always check with the Secretary of State to make sure the professional and the product are registered.
The United States Attorney’s Office emphasized that an indictment is merely an allegation and that all persons charged are presumed innocent until, and unless, proven guilty in court.
The case is being prosecuted by Assistant United States Attorney Toi Denise Houston.
Defendant/Respondent: Richard E. Gearhart and George R. McKown
Crime: Conspiracy to commit securities fraud, securities fraud, and wire fraud
City and State: Hammond, Indiana
Date: 2024
Sentence or Outcome: To be determined
Related Federal Cases
- Richard E. Gearhart, Securities Fraud Conspiracy, Indiana 2024 · Indiana
- Lowell Gene “Bob” Hancher, Wire and Securities Fraud, IN, 2013 · Colorado
- James Burkhart, Mail Fraud, Wire Fraud, Health Care Fraud, Indiana 2009 · Indiana
- Nicole Pennington, COVID Loan Wire Fraud, California 2023 · Indiana
- Gregory L. Crabtree, Securities Fraud, Ohio 2014 · Kentucky
Key Facts
- State: Indiana
- Category: White Collar Crime|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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