Ohio-Based Financial Advisors Indicted Over Massive $72 Million Ponzi Scheme

Posted on April 20th, 2023 at 1:10 PM
Ohio-Based Financial Advisors Indicted Over Massive $72 Million Ponzi Scheme

From the desk of Jim Eccleston at Eccleston Law 

Ohio Attorney General Dave Yost and Ohio Department of Commerce Director Sherry Maxfield have announced multiple felony charges against a group of financial advisors who allegedly misappropriated $72 million from at least 200 clients during the past decade.

The indictment charges eight defendants, including James DelVerne, Doug Miller, Gary Rathbun, Colleen Hall, Nancy Rathbun, Adam Solon, John Walters, and Brad Konerman with numerous felonies. The charges include engaging in a pattern of corrupt activity, unlawful securities practices, telecommunications fraud, aggravated theft, perjury, money laundering, and several other financial charges. The controversy revolves around a Toledo-based advisory firm, Northwest Capital, which serves as an intermediary between investors and businesses raising capital by selling accounts receivables.

According to the indictment, the defendants improperly convinced clients to purchase alternative investments from issuers without disclosing conflicts of interest between January 2011 and December 2021. In order to raise additional capital, the defendants organized affiliated businesses for investment without disclosing to investors the true financial condition of the entities. The defendants also falsified investment values and performance, which were provided annually to investors, according to the indictment.

 

Eccleston Law LLC represents financial advisors and investors nationwide in securities, employment, transition, regulatory and disciplinary matters.

Tags: eccleston, eccleston law

Return to Archive

TESTIMONIALS

Previous
Next

If you find yourself in trouble with the regulators, call Eccleston Law, you won't regret it.

Rick R.

LATEST NEWS AND ARTICLES

December 10, 2025
SEC Highlights Rising Risks in RIA Consolidation and Focuses on Retailer Investor Protection

The Securities and Exchange Commission signaled heightened scrutiny of investment advisers involved in mergers and acquisitions, according to its newly released 2026 Examination Priorities.

December 9, 2025
The Vanishing Boundary Between Investing and Gambling

According to Bloomberg Law, there now are the tools, tactics, and a psychology of gambling that increasingly resembles those of retail trading.

December 8, 2025
Former Morgan Stanley Advisor Faces FINRA Action Over Undisclosed Loans from Elderly Client

FINRA filed a complaint against former Morgan Stanley advisor Kirk J. Crossen, alleging that he borrowed $400,000 from an 84-year-old customer experiencing early-stage dementia and concealed the loans from his firm.