An Ohio investment advisor was convicted for stealing more than $9.3 million from victims during the course of a multiyear Ponzi scheme, according to the Justice Department.
Raymond A. Erker, a 50-year-old former advisor from Avon, Ohio, was convicted this week following a seven-day trial in Cleveland. During the course of the investigation, it was revealed that one of his alleged victims, a former prosecutor and judge, wore a hidden wire in order to tape a confession from the advisor, according to local outlets.
Previously, Erker was a state-registered rep, though the Ohio Division of Securities revoked his license in 2012 after he had “not disclosed material changes and disclosable matters” on certain documents, showing a “lack of good business repute,” according to Erker’s AdviserInfo page. Previously, Erker worked for Merrill Lynch and had a seven-year stint with LPL, before owning and operating SageGuard Wealth Management (among a number of SageGuard entities) until 2019.
According to the DOJ’s indictment, Erker, as well as co-defendants Kevin Krantz and Tara Brunst, began the scheme that affected at least 54 investors in January 2013 (both Krantz and Brunst previously pleaded guilty). The trio solicited clients to invest in the companies GenSource and Provident, assuring investors that they were purchasing annuities and senior secured notes “with no exposure to risk of loss and with guaranteed rates…
