Owner Of G3 Capitol Management Appears In Court Charged With Mail Fraud
– Cory B. George arrested in Las Vegas, Nevada
– Investor money used for shopping, traveling and gambling
LOUISVILLE, KY – An Owensboro, Kentucky man appeared in United States District Court this morning, charged in a single count federal indictment, with devising a scheme to defraud investors in G3 Capital Management and to obtain money and property by means of false and fraudulent pretenses announced David J. Hale, United States Attorney for the Western District of Kentucky.
According to court records, Cory B. George, age 27, allegedly defrauded investors between December 15, 2009 and April 27, 2011 of more than $1,749,590 by promising to purchase Certificates of Deposit, when the money was invested in the commodities market or used by George for personal expenses such as shopping, traveling, and gambling. The indictment alleges that George incorporated G3 Capital Management, with its principal place of business in Owensboro, Kentucky, in December 2009, then set up businesses in Palm Beach, Florida, and Houston, Texas. George ran advertisements in local newspapers offering short term Certificates of Deposit paying from 3-5% interest and represented that investors’ deposits would be guaranteed by G3 Capital Management, and that investor funds would be placed into an SIPC (Securities Investor Protection Corporation) account. G3 Capital was not a bank and was not authorized to issue Certificates of Deposit. Investor checks were sent to George, by a commercial interstate carrier, and deposited into two bank accounts, in the name of G3 Capital Management, located in Marion, Kentucky.
George was arrested in Las Vegas, Nevada on a Criminal Complaint that was filed in United States District Court on May 11, 2011 and is in the custody of the United States Marshals Service.
George’s criminal history lists several prior arrests for fraud in Kentucky, Indiana, and Nevada. If convicted, George faces a maximum penalty of five years in prison, a $250,000 fine, and three years of supervised release. A detention hearing is scheduled in United States District Court, August 23, 2011, at 11:00 am CST in Owensboro, Kentucky.
This case is being prosecuted by Assistant United States Attorney Marisa Ford and was investigated by the FBI in Owensboro, Kentucky and the Florida Office of Financial Regulation in West Palm Beach, Florida.
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The charges in the indictment are merely allegations and all defendants are presumed innocent until proven guilty in a court of law.