BCI and the Ohio Department of Commerce executed a search warrant against the organization in February 2021.
Toledo, Ohio — Editor’s Note: The attached video is from an earlier report that aired on February 23, 2021.
8 finance managers from north west capitala Lucas County investment firm faces a total of 204 felony counts after it was accused of mismanaging $72 million in client money, deceiving and defrauding investors in a 10-year scheme.
An indictment was filed last week in the Lucas County Common Court of Appeals, naming eight defendants facing felony charges, according to a press release issued by the Ohio Attorney General on Tuesday afternoon.
- James Delvern, 93 felonies
- Doug Miller, 39 felonies
- Gary Rathbun, 37 felonies
- Colleen Hall, 10 felonies
- Nancy Rathbun, 7 Felonies
- Adam Salon, 7 Felonies
- John Walters, Six Felonies
- brad connerman, five felonies
DelVerne was the director of development and Waters was the company’s chief credit officer and chief risk officer, according to Northwest Capital’s website.
DelVerne managed relationships with private lenders and oversaw the purchase order financing group. Walters was responsible for identifying, quantifying and mitigating credit and operational risks associated with commercial financial operations.
Officials said seven of the suspects were arrested on Tuesday, with the final suspect awaiting citation.
Felony charges include involvement in an array of corrupt practices, unlawful securities practices, telecommunications fraud, aggravated theft, perjury, money laundering, and other financial-related charges.
The full text of the indictment is below.
According to authorities, the criminal activity allegedly took place between January 2011 and December 2021, during which the defendants persuaded clients to purchase investments without fully disclosing the manager’s conflict of interest. I was advising you.
They are also accused of manipulating funds to make the investment appear to be successful, and have been accused of starting a new investment company without disclosing that the company was in poor financial condition. The investment entity is also said to have enabled “skimming” of monitoring fees from clients.
In total, the suspects are accused of mismanaging a total of $72 million from 741 investments belonging to at least 200 people.
The Ohio Attorney General also said other investment groups were involved in the prosecution. These include Briarfield Capital, ThunderRoad Partners, TRF Fund 1, TRF Fund 2, Kings Point Leasing and Winding Creek Partners.
Officials described the indictment as the “culmination” of a multi-year investigation by the Ohio Department of Commerce’s Securities Division and the Ohio BCI.
February 2021, WTOL 11 reported Ohio BCI and Department of Commerce executed a search warrant A building on Kings Point Road, Sylvania, with the Northwest Capital sign in front.
The Ohio Attorney General also said anyone who suspects they or a family member has been a victim of investment fraud can call the Securities Division’s Investor Protection Hotline at 877-683-7841.
More local crime headlines from WTOL 11
https://www.wtol.com/article/news/crime/northwest-capital-scam-fraud-mismanagement-scheme-update/512-b5a35e4d-7fd3-4bbc-bf64-5eab205ed4b4 Northwest Capital Claims Unfair Management Scheme Renewal