UPDATE! KGTA Petroleum, Jeffrey Gainer, Jerry Cicolani, Kelly Hood, and PrimeSolutions Securities
KGTA Petroleum, Jeffrey Gainer, Jerry Cicolani, Kelly Hood, and PrimeSolutions Securities
Have you lost money in KGTA Petroleum? We are continuing our investigation into allegations made by the FBI, IRS, and the U.S. Attorney’s Cleveland office regarding Akron, Ohio-based KGTA Petroleum. On December 8, 2014, criminal charges were brought against KGTA Petroleum co-owner and operator Kenneth A. Grant. Grant is charged with conspiracy to commit wire fraud and securities fraud, and money laundering. It has been alleged that Grant defrauded over 70 investors for over $17 million in losses.
In the first couple of weeks of July 2016, a number of co-defendants in this criminal matter pled guilty. According to Cleveland.com, Jeffrey Gainer pled guilty on Friday, July 15. Co-Defendant Mark George pled guilty on Monday, July 11, and Thomas Abdallah pled guilty on Thursday, July 14.
The SEC (Securities and Exchange Commission) previously brought actions against Jeffrey Gainer, Jerry Cicolani, and Kelly Hood, alleging that they made recommendations to their clients to invest in KGTA Petroleum. Unfortunately, the SEC alleges that KGTA Petroleum was purported to be an investment in oil and fuel but was nothing but a sham. The SEC alleges that Jeffrey Gainer, Jerry Cicolani Jr., and Kelly Hood sold investments in KGTA to investors between October 2012 and February 2014.
On April 14, 2015, the U.S. Attorney’s Office brought criminal charges against Jerry Cicolani Jr. and Kelly Hood related to this scheme. According to the criminal complaint, Cicolani recommended KGTA to at least 39 investors and earned over $5 million in commissions from selling KGTA. Cicolani and Hood have since pled guilty to this scheme.
Jeffrey Gainer, Jerry Cicolani, and Kelly Hood were all financial advisors and registered representatives with PrimeSolutions Securities, a FINRA registered broker-dealer firm. Each worked in PrimeSolutions Securities’ branch office in Cleveland. Gainer, Cicolani, and Hood were all terminated from PrimeSolutions Securities for their involvement with KGTA.
Broker-dealers like PrimeSolutions Securities have a responsibility to adequately supervise all representatives who are registered through their firm, including investments sold by their registered representatives. Broker-dealers also must take steps to ensure that their financial advisors follow all securities rules and regulations, as well as internal firm policies. When broker-dealers fail to adequately supervise their registered representatives, they may be liable for investment losses sustained by customers.
Our firm has represented over a thousand investors that have been defrauded by their stockbroker or financial advisor. While we have offices in Denver and the Seattle-area, we have previously represented investors throughout the country, including in Ohio and Florida.
IF YOU HAVE LOST MONEY THROUGH KGTA PETROLEUM AT THE RECOMMENDATION OF JEFFREY GAINER, JERRY CICOLANI, OR KELLY HOOD,
Denver Office: (720) 599-3505
Seattle Office: (206) 795-5798
Israels & Neuman, PLC is a private law firm and is not affiliated with any government or law enforcement agency. Any investigation referenced in this blog is independent in nature and is being conducted by our law firm privately, not in conjunction with any government or law enforcement agency. All information contained in this blog should be deemed statements of opinion derived from the author’s review of public records, not statements of fact. This blog is advertising material and does not create an attorney client relationship, nor does it constitute legal advice. Everyone’s situation is different and the question of whether or not you have a claim will vary on a case-by-case basis. In contingent representation, clients may still be liable for costs.