The Securities and Exchange Commission in text book fashion filed an emergency civil action in federal court charging principals in KGTA for participating in fraud. The SEC alleged investors were told that KGTA bought and resold refined fuel products, of which did not happen and in-fact operated a Ponzi scheme. The article below sheds light on KGTA’s deception and helps to summarize current events surrounding the case.
Feds charge principal of KGTA Petroleum Ltd. with defrauding investors out of $17 million
A Copley man who is a principal of KGTA Petroleum Ltd. on Monday, Dec. 8, was charged by federal prosecutors with defrauding about 70 investors out of approximately $17 million.
In a news release, Steven Dettelbach, the U.S. Attorney for the Northern District of Ohio, said his office charged Kenneth A. Grant with one count of conspiracy to commit wire fraud and securities fraud and one count of money laundering.
The FBI’s Cleveland Office and the criminal investigations unit of the IRS’ Cincinnati Field Office collaborated with the prosecutor’s office on the investigation.
“Ken Grant callously preyed on the desires of many to make wise investments for a secure future and duped them out of their life savings,” said Stephen D. Anthony, special agent in charge of the FBI’s Cleveland Office. “Fraudsters such as Mr. Grant remain a top priority of the FBI.” read full article here.
Contact the Law Offices of Peter C. Rageas if you have been harmed by a securities violation. We have been defending clients for over 20 years in Michigan and beyond!