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Ohio Men Plead Guilty in $17 Million Ponzi Scheme

Thomas Abdallah, Mark George, and Jeffrey Gainer have pleaded guilty to their involvement in the large Akron-based Ponzi scheme involving the company KGTA Petroleum Ltd., a purported company that sold oil and fuel. All three were indicted back in June 2015 for conspiracy, wire fraud, money laundering, and selling unregistered securities.

This scheme began as early as 2010, and the indictment stated that approximately $31 million was fraudulently collected from 70 investors, who were promised they would receive 60 percent annual returns. In reality, the investment scheme was a sham. Grant and others obtained about $31 million through false and fraudulent pretenses, knowing KGTA did not have agreements in place to sell oil and fuel, and that investors would not earn these inflated returns on their investments.

Meyer Wilson has been reporting on this case from the beginning, and represents numerous victims of the KGTA fraud and is pursuing claims on their behalf. To read more about the individuals involved, visit:

Gainer was a stockbroker registered at the time with Primesolutions Securities, Inc., a Cleveland-based brokerage firm. The indictment stated that Gainer recruited investors to KGTA, which earned him undisclosed commissions and cash bonuses every month. Gainer was permanently barred from the securities industry by the Financial Industry Regulatory Authority (FINRA) the same month he was indicted.

Gainer, Abdallah, and George will be sentenced on October 4, 2016 by U.S. District Judge Donald Nugent.

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 .

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