Recovering Losses caused by Investment Misconduct

Operation Broken Trust Led to Nine Guilty Pleas/Convictions in NE Ohio

U.S. Attorney General Eric Holder announced on Monday that Operation Broken Trust, the nationwide investment fraud sweep that ended early this month, led to a guilty plea or conviction in nine NE Ohio securities fraud cases. The nine cases defrauded at least 422 individual investors out of approximately $68.7 million. The defendants were from areas throughout NE Ohio, including: Chagrin Falls, Cuyahoga Falls, Mentor, North Olmsted, Perrysburg, and Warren. 

Steven Dettelbach, United States Attorney for the Northern District of Ohio, highlighted the devastating effects of securities fraud: "These types of crimes are particularly egregious because they take advantage of peoples' trust and then, in many cases, strip them of their life's savings."

The U.S. Attorney General provided the following details in regards to seven of the nine cases:

David J. Harriett, owner of DJ Harriet, Inc. in Warren, was sentenced to 68 months in prison for the operation of a Ponzi scheme that defrauded an estimated 200 people out of approximately $7 million.
Kevin L. Harris, part-owner of the Warren-based companies Complete Developments LLC (CDL) and Investments International Inc. (I-3), pled guilty to conspiracy, wire fraud, and money laundering for his role in an investment scheme that defrauded a number of individual investors out of approximately $20 million.
William E. Schneider, of Estate Conservation Group, LLC in North Olmsted, was indicted in October on charges of mail fraud and bank fraud for his role in an investment scheme that authorities allege defrauded individual investors out of approximately $470,558.

Richard C. Shade, of Perrysburg, pled guilty to the operation of a Ponzi scheme. Shade's scheme defrauded 53 individual investors out of an approximate $6.3 million. He has not yet been sentenced.
Raymond Thomas, a former police officer in Warrensville Heights, pled guilty to mail fraud and falsifying a tax return for his role in a Ponzi scheme that defrauded approximately 25 individual investors out of an estimated $889,000. He was sentenced to six years in prison.

Dale P. Zucker, an attorney and local businessman in Chagrin Falls, pled guilty to mail fraud, failure to pay taxes, and failure to appear for his role in a Ponzi scheme that defrauded 14 individual investors out of approximately $600,000. He was sentenced to more than seven years in prison.

In response to the success of Operation Broken Trust, Dettelbach told WKYC: "We will continue working vigorously to ensure free markets are fair markets." Continued efforts on the part of law enforcement and securities regulators are expected.

Operation Broken Trust was a collaborative enforcement effort by the FBI, the IRS, and the USPS. It was the largest investment fraud sweep of its kind in U.S. history. The criminal and civil cases involved a combined total of $10.4 billion in losses nationwide.

About our law firm:

The Ohio-based law firm of David P. Meyer & Associates represents clients who have been harmed by investment fraud. Contact us toll-free at 1.866.827.6537 for more information.