Related Federal Cases
Three Northeast Ohio Men Accused of $17M Investment Scam
Thomas Abdallah, 51, of Brunswick, Mark M. George, 58, of Independence, and Jeffrey L. Gainer, 51, of Akron are facing serious charges after being accused of defrauding investors out of approximately $17 million in a massive investment scam.
The indictment, which was announced by Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, alleges that the trio used a company called KGTA Petroleum, Ltd. to lure in investors with promises of guaranteed returns of up to 5 percent per month or annual payments of approximately 60 percent per year.
However, according to the indictment, the defendants never filed documentation about KGTA with the Securities and Exchange Commission and used investor money for personal expenditures and luxury items, including a Mercedes Benz, a boat, and mortgage payments on high-end residential property.
The scheme, which lasted from 2010 to 2014, netted the defendants approximately $31 million from about 70 investors. However, the defendants defrauded the investors out of approximately $17 million.
The indictment is just the latest development in a growing trend of investment scams that are targeting unsuspecting victims.
“This case is another sad reminder that so-called investment gurus who make promises of big guaranteed returns should send up red flags,” Dettelbach said. “If something seems too good to be true, it usually is.”
“These defendants callously preyed on the desires of many to make wise investments for a secure future and duped them out of their life savings,” said Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office. “Fraudsters such as these remain a top priority of the FBI.”
The case is being prosecuted by Assistant U.S. Attorneys Mark S. Bennett and M. Kendra Klump following an investigation by the Federal Bureau of Investigation and Internal Revenue Service – Criminal Investigations.
If convicted, the defendants’ sentences will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.
RELATED: Akron Drug Ring Busted: Kilos, Cash, and a Militia’s Worth of Guns
RELATED: Akron Drug Ring Busted: Kilos, Cash & Guns
Key Facts
- State: Ohio
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News