Richard A. Zakarian, 48, of Vermilion, Ohio, has been sentenced to 17½ years in prison and ordered to pay over $4.4 million in restitution for masterminding a massive financial fraud scheme that targeted nearly 100 clients.
Zakarian, a certified financial planner and self-employed tax preparer, pleaded guilty earlier this year to two counts of wire fraud, two counts of mail fraud, and one count of making and subscribing false income tax returns. His deceptions spanned over a decade, from September 2002 to August 2012.
The defendant operated two separate schemes: the first involved defrauding investment clients by misleading them into investing their retirement funds in risky ventures; the second targeted payroll tax clients through his company, Ben Franklin Payroll Service. Many of Zakarian’s victims were churches and non-profit organizations that he lured with false promises of charity grants.
U.S. Attorney for the Northern District of Ohio, Steven M. Dettelbach, emphasized the impact on vulnerable communities: “This defendant preyed on non-profits, churches and small businesses that struggled to make ends meet while making their communities better. He never meant to help them, only to defraud them.”
FBI Special Agent in Charge Stephen D. Anthony highlighted the deliberate nature of Zakarian’s crimes: “Zakarian orchestrated multiple financial schemes for his own monetary gain. Authorities will continue to bring justice to those who choose to unlawfully violate the trust of their clients.”
Documents filed in U.S. District Court reveal that while some investors did receive returns, 23 clients incurred combined losses exceeding $1 million. Many of these victims were retirees or individuals nearing retirement age who transferred funds from secure investments like stocks and bonds to Zakarian’s schemes.
Related Federal Cases
- Fairlawn Man Gets 3 Years, $14M Fine for Fraudulent Schemes · Ohio
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- Shaker Heights Man Indicted for Diplomatic Impersonation & Fraudulent Property Purchase Attempt · Ohio
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Key Facts
- State: Ohio
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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