Crabtree Sentenced For Securities Fraud In Connection With Investment Fraud Scheme
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Gregory L. Crabtree, 53, of Procterville, Ohio, was sentenced to sixty months imprisonment and $20,128,570.23 in restitution today in Athens, Georgia, by Chief United States District Court Judge C. Ashley Royal as the result of Mr. Crabtree’s participation in a “Ponzi” or investment scheme which took place between 2007 and 2010.
Crabtree and a codefendant were originally charged in an eighty-five count indictment resulting from an investment fraud or “Ponzi” scheme in which investors were told that their money would be used to purchase surplus merchandise at a large discount from national retailers. These goods were then to be sold at a large profit to other wholesale buyers for resale. In fact, the scheme was a fraud and investors were actually paid purported returns out of funds collected from other investors. Over fifty investors lost a combined total of almost $23,000,000. A total of over $80,000,000 had been invested overall in the scheme.
Crabtree pled guilty to one count of securities fraud on April 7, 2014. He cooperated with prosecutors and testified at the trial of his co-defendant, who was acquitted.
This case was prosecuted by Assistant United States Attorneys Paul C. McCommon and G. F. “Pete” Peterman, III of the United States Attorney’s Office. The investigation was conducted jointly by the Federal Bureau of Investigation and the Internal Revenue Service/Criminal Investigation.Questions regarding this matter should be directed to Karen Moore of the United States Attorney’s Office for the Middle District of Georgia (478/621-2606; firstname.lastname@example.org)