Acting U.S. Attorney Michelle M. Baeppler announced that a federal jury returned guilty verdicts today against Defendant Raymond A. Erker, 50, of Avon, Ohio, following a seven-day trial before U.S. District Judge Dan Polster in Cleveland. Erker, a former investment advisor, was convicted of stealing more than $9.3 million from clients in a Ponzi scheme.
Also charged in this matter were co-defendants Kevin Krantz, 56, and Tara M. Brunst, 47, both of Olmsted Falls. Both Krantz and Brunst previously pleaded guilty to their roles in the scheme and are awaiting sentencing.
According to court documents and evidence presented at trial, from January 2013 through July 2018, Erker, Krantz and Brunst conspired together to devise a scheme that stole $9,366,976.37 from at least 54 investors. As part of the scheme, Erker sold investments to clients that he misrepresented as annuities and senior secured notes with no risk of loss and with a guaranteed rate of return.
Court documents also state that Erker and the co-conspirators, without the approval or consent of investors, diverted funds to other entities that they controlled and their personal bank accounts. Additionally, Erker failed to disclose to clients that he maintained substantial or limited ownership interests in companies receiving investments from the scheme. To keep up with promised rates of return, Erker falsely represented that payments to previous investors were rates of return and interest when the…
