Call Now For a Free Consultation:
(614) 532-4576
Nationwide Representation

California Man Pleads Guilty in Alleged T-Bill Trading Ponzi Scheme

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.

The information contained in The Firm’s posts on its blog, fraud alerts, investigations or elsewhere on the site is based upon information obtained from other sources including, but not limited to, news outlets and federal, state, and regulatory agency filings. All suspects and subjects of postings herein are presumed innocent until proven guilty in a court of law or administrative action and any and all crimes are alleged until a court or regulatory agency finds otherwise .

Share This Story
If you found the information provided by this article useful, consider sharing to your social media channels to help others in their search for reliable resources.
Consult with Our Legal Team
There is never a cost associated with a consultation
Atlanta Office

945 East Paces Ferry Road, Suite 2275
Atlanta, GA 30326
Columbus Office

614-224-6000
305 W. Nationwide Blvd
Columbus, OH 43215
Meyer Wilson
New Orleans Office

900 Camp Street 
Suite 337
New Orleans, LA 70130
Los Angeles Office

310-905-8688
2029 Century Park East,
Suite 400N
Los Angeles, CA 90067
Cleveland Office

216-600-1355
4781 Richmond Rd.
Suite 400
Warrensville Heights, OH 44128
Bloomfield Hills Office

248-817-8214
41000 Woodward Ave.,
Suite 350
Bloomfield Hills, MI 48304
Quick Links
The information contained in this Website is provided for informational purposes only, and should not be construed as legal advice on any subject matter. No recipients of content from this site, clients or otherwise, should act or refrain from acting on the basis of any content included in the site without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from an attorney licensed in the recipient's state. Read More
The information contained in this Website is provided for informational purposes only, and should not be construed as legal advice on any subject matter.
Read More
chevron-down linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram