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

KGTA Ponzi Schemers Sentenced for Defrauding Investors $17 Million

Six people previously found guilty of attempting to defraud almost 70 investors of more than $17 million through the Northeast Ohio KGTA Ponzi scheme were sentenced on October 20th. The securities fraud attorneys at Meyer Wilson began reporting on the activities of these fraudsters since investigations into their practices began, and represented several victims of KGTA Petroleum Ltd.’s Ponzi scheme.

Following the sentencing, FBI Special Agent in Charge Stephen D. Anthony said,

“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. Fraudsters such as these remain a top priority of the FBI.”

United States Attorney for the Northern District of Ohio Carole S. Rendon commented on their activities, saying,

“These defendants swindled people out of millions of dollars so they could live extravagant lifestyles. This was flat-out fraud. The defendants knew fully that they were stealing from the investors.”

Two former stockbrokers, Jeff Gainer and Jerry Cicolani, will spend 52 months and 57 months respectively in federal prison. Both were employed by the Cleveland-based brokerage firm Primesolutions Securities, Inc. when they participated in the Ponzi scheme.

Meyer Wilson has successfully represented several victims in FINRA arbitration cases to recover the losses they suffered as a result of the KGTA fraud. During the sentencing hearing, the former managing partner of Primesolutions Securities, Inc. told Judge Nugent that his firm was forced to close after losing two cases in arbitration. The victims in those cases were represented by Meyer Wilson.

If you would like to speak with one of our attorneys, you can fill out our online form to tell us about your case, or visit our ‘Contact Us’ page to find the phone number of our nearest office.

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

305 W. Nationwide Blvd
Columbus, OH 43215
Meyer Wilson
New Orleans Office

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

2029 Century Park East,
Suite 400N
Los Angeles, CA 90067
Cleveland Office

4781 Richmond Rd.
Suite 400
Warrensville Heights, OH 44128
Bloomfield Hills Office

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