In April 2023, the Ohio Attorney General indicted eight managers from Northwest Capital for 204 felony charges related to a decade-long scheme to defraud $72 million from 200 clients across 741 transactions. Northwest Capital is a Toledo-based investment firm that serves as an intermediary between investors and businesses raising capital by selling accounts receivables.
The indicted managers were:
- James DelVerne, 93 felonies
- Doug Miller, 39 felonies (license revoked)
- Gary Rathbun, 37 felonies (license revoked)
- Colleen Hall, 10 felonies
- Nancy Rathbun, 7 felonies
- Adam Solon, 7 felonies
- John Walters, 6 felonies
- Brad Konerman, 5 felonies
The felony charges included:
- engaging in a pattern of corrupt activity
- unlawful securities practices
- telecommunications fraud
- aggravated theft
- perjury
- money laundering
- several other financial charges
The indictment states that between January 2011 and December 2021, the managers “solicited investment advisory clients to purchase alternative investments from securities issuers without fully disclosing the managers’ conflicts of interest. The defendants also manipulated funds among interrelated entities to make the investments appear successful.”
The announcement continued, “To continue raising additional capital from investors, the Northwest Capital managers and their business associates created new, affiliated entities for investment without disclosing to existing investors the poor financial condition of these companies and the monitoring fees skimmed by the defendants. They then certified false investment values, which were shared in annual statements issued to investors.”
Besides Northwest Capital, the announcement said there were other entities and investment funds associated with the indictment, included:
- Briarfield Capital
- ThunderRoad Partners
- TRF Fund 1
- TRF Fund 2
- Kings Point Leasing
- Winding Creek Partners
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Northwest Capital may be liable for investment or other losses suffered by its customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If you have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.
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