Recovering Losses caused by Investment Misconduct

Husband and Wife Plead Guilty to $20 Million Ohio Investment Fraud

Michael and Melissa Spillan, owners of One Equity Corp., Triangle Equities Group, Victory Management Group and Dafcan Finance, pled guilty last week to cheating 38 people out of almost $20 million ("Husband-wife con artists guilty of fraud," The Columbus Dispatch, April 22, 2011). The husband and wife were arrested at their Gahanna, Ohio home last September on charges of money laundering and fraud.

According to the article, authorities said that the Spillans offered secured loans through their companies to people willing to put up their publicly traded stock as collateral. Once the loans were repaid, the stock was supposed to be returned to the owners. Instead, Mr. and Mrs. Spillan sold the shares and kept the money.

In 2008, as a result of a civil lawsuit filed by the SEC, the couple's assets were frozen and liquidated to pay restitution to their defrauded clients. They were also ordered to pay more than $3 million in penalties.

At the federal court hearing last week, Judge Edmund A. Sargus accepted the couple's guilty pleas, but decided to wait until after the sentencing hearing to rule on the plea agreement itself. In the agreement, Mr. Spillan, who pled guilty to securities fraud, wire fraud, mail fraud, and conspiracy charges, agreed to an 11 ½ year prison sentence. Mrs. Spillan agreed to a prison sentence of three years for conspiracy. Under the terms of the agreement, they would also be required to repay $19 million in restitution, and would be unable to appeal their sentences.

The prison sentences outlined in the agreement are significantly less than what the two defendants could face if the plea agreement were to be rejected. Mr. Spillan, who already has several convictions on his record, could face up to 65 years in prison. Mrs. Spillan could spend up to five years in prison. If the agreement is rejected, the defendants would be allowed to withdraw their guilty pleas and go to trial.

The sentencing hearing has not yet been scheduled.

About our law firm:

The Ohio-based law firm of David P. Meyer & Associates represents individuals in Ohio and throughout the country who have been harmed by investment fraud. All of our cases are handled on a contingency fee basis and we never request a retainer of any kind. Contact us toll-free at 1.866.429.2360 for more information or complete the online form on the top of this page and we will respond promptly.