(TOLEDO, Ohio) — A Toledo investment firm executive who was among multiple co-defendants accused of deceiving and defrauding investors in a decade-long Ponzi scheme pleaded guilty today.
Richard Scheich, an executive with multiple entities involved in the Northwest Capital scheme, pleaded guilty to a bill of information in Lucas County Common Pleas Court.
Prosecutors previously charged multiple executives and businesses in the case.
A bill of information is a formal accusation of a crime issued by a prosecutor and presented to a defendant; it serves the same function as an indictment issued by a grand jury in felony cases.
Scheich pleaded guilty to:
- Two counts of conspiracy to engage in a pattern of corrupt activity (F2).
- Three counts of sale of an unregistered security (F4).
According to the bill of information, Scheich created false invoices to secure funding from lending institutions so that investors who invested in companies related to Northwest Capital could be paid. The fraudulently acquired funding was, in turn, used to entice investors to continue funding the overall investment scheme.
Scheich is believed to have defrauded nearly $9 million in investments. The overall case, including all co-defendants, includes fraudulent investments totaling $72 million.
As part of his plea agreement, Scheich will continue to cooperate with the investigation and testify in the prosecutions of the co-defendants. A sentencing date will be set after those cases conclude.
The case was investigated jointly by the Ohio Department of Commerce’s Division of Securities and the Ohio Attorney General’s Bureau of Criminal Investigation.
The case is being prosecuted by the Special Prosecutions Section of the Attorney General’s Office.