Home Cleveland Press Releases 2010 Perrysburg Man Indicted for Role in Ponzi Scheme
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Perrysburg Man Indicted for Role in Ponzi Scheme

U.S. Attorney’s Office April 09, 2010
  • Northern District of Ohio (216) 622-3600

Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced the filing of an indictment charging Richard C. Shade, Jr., age 59, of Perrysburg, Ohio, with engaging in a Ponzi scheme. He is charged with wire and mail fraud, engaging in monetary transactions with money derived from fraudulent activities, interstate transportation of stolen property, and filing false tax returns. The indictment alleges that Shade told potential investors he could purchase tool and die equipment at a discounted price, and resell the equipment at substantial profits. Shade is alleged to have represented returns of 100 percent or more in less than 30 days. The indictment alleges that with minor exceptions, Shade did not use investors’ funds to purchase tool and die equipment. As part of the Ponzi scheme, Shade is alleged to have paid investors with other investors’ funds, rather than any profits from the purchase and sale of tool and die equipment. It is charged that from June, 2003, to November, 2008, approximately 53 investors invested approximately $6.3 million in the fraudulent scheme, which resulted in a loss to the investors of approximately $3.9 million. United States Attorney Dettelbach stated, “This office is committed to pursuing and punishing those who defraud investors. The message of this indictment is clear; wrongfully take other people’s money and take a huge risk with your own future.”

If convicted, the defendant’s sentence will be determined by the court after review of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.

The investigating agencies in this case are the Federal Bureau of Investigation and the Internal Revenue Service. The case is being handled by Assistant United States Attorney Thomas A. Karol, who may be reached at the above telephone number.

An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

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