PatrickPretty.com

Tag: U.S. Attorney Carter M. Stewart

  • Another ‘Ken Russo’ Disaster: Team Of Feds Hammers Alleged Operator Of ‘Program’ Pushed By Ponzi-Forum Legend

    breakingnews725UPDATED 7:51 EDT U.S.A. Let’s start by giving you the roster of federal agencies involved in the investigations and prosecutions of William M. Apostelos, 54, and Connie M. Apostelos, 50, his wife:

    (1.) The Office of U.S. Attorney Carter M. Stewart of the Southern District of Ohio. (2.) Internal Revenue Service Criminal Investigation. (3.) The FBI. (4.) The U.S. Postal Inspection Service. (5.) U.S. Department of Labor Office of Inspector General. (6.) U.S. Department of Labor Employee Benefits Security Administration.

    In addition to the six federal agencies, the Ohio Department of Commerce Division of Securities joined in the probe that uncovered an alleged $70 million Ponzi scheme.

    So, how does Ponzi-forum legend “Ken Russo” fit into all of this? Here we’ll turn to a Nov. 1, 2014, story at BehindMLM.com. The story quotes “Ken Russo” on yet-another scam he is pushing. (Italics added.)

    I am very firm in my belief that this is the real deal and I get no sense whatsoever that any kind of scam is intended here. It is very seldom that we can find an opportunity as transparent and viable as the Genesis Acquisitions International, LLC. investment club.

    It turned out that William Apostelos was linked to Genesis Acquisitions and a sorry cast of other companies, including WMA Enterprises LLC, Midwest Green Resources LLC and Roan Capital.

    Connie Apostelos, also known as Connie Coleman, also operated and oversaw multiple companies in the Dayton area, including Coleman Capital Inc. and Silver Bridle Racing LLC, prosecutors said.

    “These companies were allegedly operated through improper use of investor funds to William Apostelos’ companies,” Stewart’s office said.

    From the statement (italics added):

    William and Connie Apostelos are charged with one count of conspiracy to commit mail and wire fraud, eight counts of mail fraud and 13 counts of wire fraud, each crimes punishable by up to 20 years in prison. They were also charged with two counts of money laundering, which each carry a potential 10-year prison sentence. They were also charged with one count of theft or embezzlement from employee benefit plan, which carries a maximum penalty of up to five years imprisonment. Finally, Connie Apostelos is charged separately with one count of making a false statement, which carries a maximum penalty of up to five years imprisonment.

    See the PP Blog’s archive of story references to “Ken Russo,” perhaps the most prolific Ponzi pitchman on the planet.

    Visit a recent “Ken Russo”-related thread at the RealScam.com antiscam forum for a “program” known as “MyBinaryProfits.”

  • BULLETIN: Securities Fraudster/Ponzi Schemer Sentenced To 40 Years

    BULLETIN: Jasen M. Snelling — who last month was sentenced to nearly 11 years in prison in a federal Ponzi-scheme case brought in Ohio — now has been sentenced in Indiana state court to 40 years.

    The state case was brought after an investigation by the office of Indiana Secretary of State Connie Lawson. Snelling was accused of selling unregistered securities, theft and using victims’ money as his own. The scam involved entities known as CityFund Advisory and Dunhill Investment.

    “While we are pleased with today’s sentencing, we will continue to aggressively pursue this case in criminal courts, civil courts or administrative proceedings, if necessary, in order to hold all those accountable who contributed to the financial losses and deep sorrow of these victims,” Lawson said in a statement today.

    Snelling, a resident of Cincinnati, was prosecuted in Indiana by Franklin County Prosecutor Mel Wilhelm, Lawson said, adding that Indiana investors lost more than $3 million.

    “This sentencing showcases cooperation between state and local officials,” Lawson said. “Securities fraud is a serious crime and by working together we can root out more fraud and abuse and stop these schemes before investors lose millions.”

    After pleading guilty in June to federal charges, Snelling, 48, was sentenced in October to 131 months and ordered to pay $5.3 million in restitution. The scam created about 72 victims, federal prosecutors said.

    “Consistent with a classic Ponzi scheme, early investors were paid interest or return of capital payments, which were not generated by investment earnings, but rather by monies solicited from later investors,” U.S. Attorney Carter M. Stewart of the Southern District of Ohio said at the time. “These payments served to lull the victims into a false sense of security and to prevent or delay the discovery of the fraudulent investment scheme.”

    Snelling compounded matters by engaging in “obstruction” and tax crimes, federal prosecutors said.

    And, they noted, “Snelling was ordered to forfeit a boat, trailer and real estate he owned in Michigan.”

    The IRS and the U.S. Postal Inspection Service handled the federal probe.