WHITE COLLAR CRIMINALS GETTING HARD TIME

 Division of Securities Investigations and Criminal Referrals Lead To Strong Sentences

It was a rewarding August for the Ohio Department of Commerce’s Division of Securities. 

After conducting extensive investigations and making criminal referrals relating to securities law violations, six white-collar criminals were sentenced in August to prison terms of at least 10 years with two criminals sentenced to 30-year and 27-year sentences. 

  “We are thrilled to see the most egregious perpetrators of securities fraud getting the hard time they richly deserve,” said Ohio Securities Commissioner Debbie Dye Joyce.  “These individuals collectively destroyed the financial security of thousands of investors.” 

 INFINITY GROUP

On August 22, Geoffrey P. Benson of the Infinity Group received a 30-year sentence in U.S. District Court in Youngstown. Benson was convicted for mail and wire fraud, conspiracy to commit wire fraud, conspiracy to impede and impair the Internal Revenue Service, and tax evasion.  In addition, Benson’s wife Susan L. Benson and Geoffrey J. O’Connor of Painesville, Ohio were each sentenced to 10 years, 1 month in prison on the same charges.  Both Bensons are from Waite Hill, Ohio. 

The judge ordered the Bensons and O’Connor to pay $12.4 million in restitution to the investors.   

The Bensons and O’Connor operated the Infinity Group, an investment business once located in Fairport Harbor and later moved to Claridon Township, Geauga County.  The Infinity Group sold investments to as many as 10,000 people worldwide in a $26.6 million pyramid and Ponzi scheme.  Approximately 80 of the investors were Ohio residents. 

 GREATER MINISTRIES

On August 6, Gerald Payne, founder of Greater Ministries International, received a 27-year sentence for securities fraud and conspiracy charges in U.S. District Court in Tampa.  Payne had been convicted on securities fraud and conspiracy charges.  His wife, Betty Payne, received a sentence of 12 years and seven months on the same charges. 

 Greater Ministries took in $490 million from 19,000 investors worldwide before the Ohio Division of Securities and the Alabama Securities Commission sought and received a permanent injunction in 1999 from the Tampa federal court.  Through the injunction, the court ordered Greater Ministries to cease their operations and investment programs, including the “Faith Promises” program that promised returns of 100% within 13 months.  More than 700 Ohioans invested more than $14 million. 

 ANDREW BODNAR

On August 27, Akron attorney and financial planner Andrew Paul Bodnar, Jr. received an 11¼ years sentence in U.S. District Court in Akron.  He was also ordered to pay $20 million in restitution.

 In a plea agreement in April, Bodnar pleaded guilty to charges of securities fraud, mail fraud, tax evasion, and conspiracy to commit securities fraud, mail fraud and wire fraud. 

 Bodnar was the mastermind of a Ponzi scheme in which he defrauded at least 700 investors of more than $41 million.  Many of the investors were elderly residents of the Akron area. 

 SECURITIES ENFORCEMENT

The Division of Securities Enforcement Section performs various tasks to enforce Ohio’s securities laws:

·       Reviewing complaints by investors

·       Monitoring the internet for securities solicitations made to Ohio investors

·       Reviewing records of securities transactions

·       Interviewing complainants

·       Subpoenaing records

·       Alleging violations of Ohio securities laws when found

·       Taking enforcement action such as issuing cease and desist orders, suspending or revoking a license, denying an application for licensure

·       Referring the most egregious cases for criminal prosecution

“Our job is not always glamorous, but we do get results,” Commissioner Dye Joyce said. 

Note to editors: If you would like to do a feature on the Division of Securities’ enforcement efforts, please give us a call.   We would be happy to provide interview sources.

#        #        #

The Division of Securities promotes an honest and fair securities market where individuals and businesses can raise capital and investors can expect a fair return on their investment.  Other Commerce divisions enforce regulations regarding industrial compliance, financial institutions, real estate, liquor, and unclaimed funds, among others.  The department’s internet address is www.state.oh.us/commerce