KENNETH E. BAILEY, JR. OF CANAL WINCHESTER INDICTED ON 58 FELONY COUNTS

Kenneth E. Bailey, Jr., of Canal Winchester, was arraigned in Fairfield County Common Pleas Court on Monday.  Following a criminal referral from the Ohio Department of Commerce’s Division of Securities, a Fairfield County grand jury indicted Bailey on Friday on 58 felony counts in connection with his operation of Trendsetter Investments, Ltd. of Canal Winchester.  Bailey is being held in Fairfield County Jail on a $1 million bond. 

Bailey was indicted on the following charges:

• Selling unregistered securities
• Making false representations in the sale of securities
• Securities fraud
• Issuing false statements as to the value of securities
• Aggravated and grand theft
• Passing bad checks
• Theft from an elderly person

Bailey was the general partner and organizer of Trendsetter.  He sold limited partnership interests to approximately 90 investors for nearly $2.5 million from July 1998 through early 2001. 

He made numerous misrepresentations to investors to induce them to invest.  Bailey failed to disclose to later investors that the limited partnership was losing large amounts of money every month while reflecting large returns on limited partner monthly statements.  Financial records also reflect the misappropriation of investor money.

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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 http://www.com.state.oh.us/