Former Hilliard Resident Pleads Guilty in $1.5 Million Investment Fraud Scheme
|U.S. Attorney’s Office May 29, 2013|
COLUMBUS—Jeffrey G. Kelly, 45, formerly of Hilliard, Ohio, pleaded guilty in U.S. District Court to carrying out a $1.5 million investment fraud scheme between 2006 and 2011. The victims included family friends, relatives, fellow church members, parents of his children’s schoolmates, and a groomsman from his wedding. Kelly pleaded guilty to one count of wire fraud and one count of interstate transportation of a security taken by fraud.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, and Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation (FBI), announced the pleas entered today before U.S. District Judge Edmund A. Sargus, Jr.
During the plea hearing, an FBI agent testified that Kelly owned and operated several businesses in the Columbus area and promised clients and potential clients that their money would be deposited in investment funds that included stocks, real estate investment trusts, bonds, and other investments. Kelly never invested the clients’ money but used the funds to pay his personal and business expenses as well as to repay earlier investors.
A federal grand jury indicted Kelly on December 11. FBI agents arrested Kelly at his workplace near his current home in Orlando, Florida. He was placed on bond and he returned to Ohio for court appearances.
Kelly operated businesses named Superior Financial Resources LLC, J.G. Kelly Financial Group LLC, J.G. Kelly Equities Group LLC, and JGK Group, LLC.
Kelly received approximately $1,523,710 from investor clients. The plea agreement calls for Kelly to make restitution to the victims of the crimes.
U.S. Attorney Stewart commended the FBI agents who investigated the case with the assistance of the Ohio Department of Commerce Division of Securities and Assistant U.S. Attorney Dale E. Williams Jr., who is representing the United States.
Wire fraud is punishable by a sentence ranging from probation to 20 years in prison. Interstate transportation of a security taken by fraud is punishable by a sentence ranging from probation to ten years in prison. Judge Sargus will set a date for sentencing.