Gahanna Couple Sentenced for $20 Million Fraud Scheme
|U.S. Attorney’s Office August 25, 2011|
COLUMBUS—Michael Spillan, 44, of Gahanna, was sentenced to 140 months in prison, and his wife, Melissa Spillan, 41, was sentenced to 36 months in prison for operating a fraudulent stock-based loan scheme that caused at least 38 victims to lose $19,695,579.17.
Carter M. Stewart, United States Attorney for the Southern District of Ohio; Edward J. Hanko, Special Agent in Charge, Federal Bureau of Investigation (FBI); and Daniel M. McDermott, U.S. Trustee for Region 9, announced the sentences imposed by U.S. District Judge Edmund A. Sargus, Jr.
They were also ordered to pay restitution to all of their victims.
The Spillans owned several companies in central Ohio including One Equity Corporation, Triangle Equities Group, Inc., Victory Management Group, Inc., and Dafcan Finance, Inc.
Between 2003 and 2008, the Spillans made low-interest loans to their victims who transferred shares of stock to the Spillans for them to hold as collateral against the loans. The Spillans promised to return the stock to the borrowers once the loans were repaid. The Spillans sold the stock without the borrowers’ knowledge instead of holding the shares and used the proceeds to fund other loans or for their own personal gain.
In April 2011, they each pleaded guilty to one count of conspiracy to commit securities fraud, mail fraud and wire fraud. Michael Spillan also pleaded guilty to one count of securities fraud, one count of wire fraud, and one count of mail fraud.
Stewart commended the investigation conducted by FBI agents. Stewart also commended Financial Crimes Chief Brenda Shoemaker and Special Assistant U.S. Attorney Dean P. Wyman with the U.S. Trustees Office, who prosecuted the case.