Chesterton Tribune

 

 

Two NWI men charged with fraud in federal court

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Two men have been charged in federal court with conspiracy to commit securities fraud, securities fraud, and wire fraud, the U.S. Attorney’s Office for the Northern District of Indiana announced on Thursday.

Charged are Richard E. Gearhart, 66, of Lowell, and George R. McKown, 65, of Indianapolis.

“According to documents filed in this case,” the U.S. Attorney’s Office said, “it is alleged that the defendants sold securities to individuals who transferred their traditional IRAs, pensions, annuities, 401ks, and cash to invest with Gearhart and McKown, through Asset Preservation Specialists, Inc., after being guaranteed that their original investment was safe and sound and promising a guaranteed rate of return. Gearhart and McKown were not registered with the SEC or the State of Indiana to sell securities.”

“Gearhart had all the warning signs of a typical Ponzi scheme,” Indiana Secretary of State Connie Lawson said. “He took advantage of people he knew and wasn’t registered with my office to sell securities.”

Lawson reminded all potential investors to check with the Secretary of State to make sure both the broker and the broker’s product are registered, no matter how well they think they know the purported broker or how successful the broker appears.

 

 

Posted 12/30/2016

 

 
 
 
 

 

 

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