{"id":4075,"date":"2016-12-29T18:40:05","date_gmt":"2016-12-30T00:40:05","guid":{"rendered":"https:\/\/www.investorlawyers.com\/blog\/?p=4075"},"modified":"2022-03-28T11:27:31","modified_gmt":"2022-03-28T16:27:31","slug":"securities-fraud-two-indiana-men-charged-running-ponzi-scam-ny-investment-adviser-gets-five-year-prison-sentence-1-725m-scam-illinois-investment-firm-owner-ordered-pay-270k","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/securities-fraud-two-indiana-men-charged-running-ponzi-scam-ny-investment-adviser-gets-five-year-prison-sentence-1-725m-scam-illinois-investment-firm-owner-ordered-pay-270k\/","title":{"rendered":"Securities Fraud: Two Indiana Men Are Charged with Running Ponzi Scam, NY Investment Adviser Gets Five-Year Prison Sentence for $1.725M Scam, and Illinois Investment Firm Owner is Ordered to Pay $270K in Restitution \u00a0"},"content":{"rendered":"<p><strong>Two Men Are Accused of Scamming Indiana Investors in More than $3.5M Ponzi Scam\u00a0<\/strong><br \/>\nProsecutors are charging two Indiana men with securities fraud involving a Ponzi scam. They claim that Richard E. Gearhart and his business partner George R. McKown sold securities to investors who moved their annuities, pensions, cash, and 401ks to invest in Asset Preservation Specialists Inc. The investors were purportedly promised a guaranteed return rate.<\/p>\n<p>The authorities say that McKown and Gearhart were not registered with the state of Indiana or the Securities and Exchange Commission to sell these securities.<\/p>\n<p>It was in 2013 that a number of Gearhart\u2019s clients filed complaints against him after he filed for Chapter 13 federal bankruptcy. They contended that their losses collectively totaled over $2M. Court records, however, indicate that the two men allegedly stole over $3.5M from over two dozen investors. between &#8217;08 and &#8217;13.<\/p>\n<p> <a href=\"https:\/\/www.investorlawyers.com\/blog\/securities-fraud-two-indiana-men-charged-running-ponzi-scam-ny-investment-adviser-gets-five-year-prison-sentence-1-725m-scam-illinois-investment-firm-owner-ordered-pay-270k\/#more-4075\" class=\"more-link\">Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Two Men Are Accused of Scamming Indiana Investors in More than $3.5M Ponzi Scam\u00a0 Prosecutors are charging two Indiana men with securities fraud involving a Ponzi scam. They claim that Richard E. Gearhart and his business partner George R. McKown sold securities to investors who moved their annuities, pensions, cash, and 401ks to invest in [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3781,3738,3792,3760,3741],"tags":[2671,2672],"class_list":["post-4075","post","type-post","status-publish","format-standard","hentry","category-investment-advisers","category-investor-fraud","category-ponzi-scams","category-sec-enforcement","category-securities-fraud","tag-baytree-investors","tag-david-blaine-welliver"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Securities Fraud: Two Indiana Men Are Charged with Running Ponzi Scam, NY Investment Adviser Gets Five-Year Prison Sentence for $1.725M Scam, and Illinois Investment Firm Owner is Ordered to Pay $270K in Restitution \u00a0 &#8212; Investor Lawyers Blog &#8212; December 29, 2016<\/title>\n<meta name=\"description\" content=\"Two Men Are Accused of Scamming Indiana Investors in More than $3.5M Ponzi Scam\u00a0 Prosecutors are charging two Indiana men with securities fraud involving &#8212; December 29, 2016\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/securities-fraud-two-indiana-men-charged-running-ponzi-scam-ny-investment-adviser-gets-five-year-prison-sentence-1-725m-scam-illinois-investment-firm-owner-ordered-pay-270k\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Securities Fraud: Two Indiana Men Are Charged with Running Ponzi Scam, NY Investment Adviser Gets Five-Year Prison Sentence for $1.725M Scam, and Illinois Investment Firm Owner is Ordered to Pay $270K in Restitution \u00a0 &#8212; Investor Lawyers Blog &#8212; 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Kantas, LLP","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.investorlawyers.com\/blog\/securities-fraud-two-indiana-men-charged-running-ponzi-scam-ny-investment-adviser-gets-five-year-prison-sentence-1-725m-scam-illinois-investment-firm-owner-ordered-pay-270k\/#article","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/securities-fraud-two-indiana-men-charged-running-ponzi-scam-ny-investment-adviser-gets-five-year-prison-sentence-1-725m-scam-illinois-investment-firm-owner-ordered-pay-270k\/"},"author":{"name":"Shepherd Smith Edwards &amp; Kantas, LLP","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"headline":"Securities Fraud: Two Indiana Men Are Charged with Running Ponzi Scam, NY Investment Adviser Gets Five-Year Prison Sentence for $1.725M Scam, and Illinois Investment Firm Owner is Ordered to Pay $270K in Restitution \u00a0","datePublished":"2016-12-30T00:40:05+00:00","dateModified":"2022-03-28T16:27:31+00:00","mainEntityOfPage":{"@id":"https:\/\/www.investorlawyers.com\/blog\/securities-fraud-two-indiana-men-charged-running-ponzi-scam-ny-investment-adviser-gets-five-year-prison-sentence-1-725m-scam-illinois-investment-firm-owner-ordered-pay-270k\/"},"wordCount":591,"keywords":["Baytree Investors","David Blaine Welliver"],"articleSection":["Investment Advisers","Investor Fraud","Ponzi Scams","SEC Enforcement","Securities Fraud"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.investorlawyers.com\/blog\/securities-fraud-two-indiana-men-charged-running-ponzi-scam-ny-investment-adviser-gets-five-year-prison-sentence-1-725m-scam-illinois-investment-firm-owner-ordered-pay-270k\/","url":"https:\/\/www.investorlawyers.com\/blog\/securities-fraud-two-indiana-men-charged-running-ponzi-scam-ny-investment-adviser-gets-five-year-prison-sentence-1-725m-scam-illinois-investment-firm-owner-ordered-pay-270k\/","name":"Securities Fraud: Two Indiana Men Are Charged with Running Ponzi Scam, NY Investment Adviser Gets Five-Year Prison Sentence for $1.725M Scam, and Illinois Investment Firm Owner is Ordered to Pay $270K in Restitution \u00a0 &#8212; 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