According to a recent article, a California man has pleaded guilty to two counts of securities fraud before a federal judge in Fort Worth, Texas. Jeffrey J. Sykes, of Redlands, California, will face a maximum of five years in prison for the alleged investment scam, as well as fines and restitution.
According to the allegations against them, Sykes and former Dallas Cowboy center Michael John Kiselak solicited about $46 million from investors for a non-existent T-Bill trading program—with about $22.5 million of that personally raised by Sykes. The alleged Ponzi scheme was run through Syke’s Gemstar Capital Group, Inc., and some investors are reported to have received false account statements from Gemstar. It is alleged that they distributed false information about the fake investment, and that investors lost a collective $12.98 million in the scam. The pair is believed to have used investors’ cash to pay prior investors in the alleged Ponzi scheme and for personal use.
Sykes is set to be sentenced in this case on April 26, 2013. Kiselak was not charged in this case, but was ordered to give up $19 million in 2009 for allegedly lying to friends and family about the program and his fees.
Unfortunately, investment fraud and stockbroker misconduct can happen to anyone, and cases like this are not unusual in our current economic environment. If you have become the victim of a Ponzi scheme or scam, reach out to an experienced Ponzi scheme lawyer with Meyer Wilson today. You can reach us anytime by calling (614) 532-4576 or by filling out the confidential online contact form on this page.