Kansas Man Pleads Guilty To Defrauding Investors
KANSAS, KAN. – An Overland Park man pleaded guilty Tuesday to defrauding investors in his businesses, U.S. Attorney Barry Grissom said.
Richard Ballard, 67, Overland Park, Kan., pleaded guilty to one count of wire fraud. In his plea, he admitted that he diverted $99,649 from companies he owned and used the investment proceeds for his personal benefit.
From March 2007 to September 2008 approximately 18 individuals or couples invested approximately $1.2 million into Ballard’s business ventures, including CRB Group, LLC; CRB Springwater, LLC; CRB Biosoft, LLC; CRB Holdings, LLC; and JHS Foods, LLC. He solicited working capital from investors for CRB Springwatter, LLC, to develop environmentally friendly bottled water and CRB Biosoft, LLC, to produce environmentally friendly pet chews.
Ballard wired a total of $125,000 from an account in New York to an account he controlled in Kansas. In the next few days, he engaged in 20 debit transactions totaling $99,649 by which he diverted corporate proceeds to other companies that he owned and used the investment proceeds for his personal benefit.
Sentencing is set for May 16. The parties have agreed to recommend 27 months in federal prison and restitution to be determined by the court.
Grissom commended the FBI and Assistant U.S. Attorney Jabari Wamble for their work on the case.