Former Toledo investment adviser is 3rd to plead guilty in massive $72M Ponzi scheme
The Ohio Department of Commerce Division of Securities announced that James Delverne, a former investment adviser with Northwest Capital in Toledo, has become the third individual to plead guilty in connection with an alleged decade-long, $72 million Ponzi scheme.
Admitting to his role in a scheme to defraud Ohio investors, Delverne entered his plea in Lucas County Common Pleas Court to multiple felony counts, including securities fraud and false representations in the sale of a security.
Delverne also agreed to cooperate with the ongoing investigation and testify in the prosecutions of co-defendants. The case is the result of a multi-year investigation led by the Division of Securities in partnership with the Ohio Attorney General’s Bureau of Criminal Investigation. Deputy Attorney Inspector Harvey McCleskey led the investigation for the Division of Securities, meanwhile the prosecution is being led by Principle Assistant Attorney General Dan Kasaris and Assistant Attorney General Drew Wood.
“This development illustrates the ongoing and tireless work of our Division’s enforcement team to hold accountable those who take advantage of and defraud victims,” said Ohio Securities Commissioner Andrea Seidt. “This plea marks another significant step toward accountability in one of the most complex securities fraud cases our Division has ever investigated. We remain committed to protecting Ohio investors and appreciate the prosecution team's outstanding work ensuring those who violate the law face justice.”
Delverne’s plea follows a similar plea the previous week from one of his co-defendants, Doug Miller. Last May, Richard Scheich, a former executive with Northwest Capital also pleaded guilty to multiple felony counts in the case. Scheich’s actions allegedly defrauded investors of nearly $9 million in investments, contributing to a larger $72 million alleged fraudulent scheme.
From January 2011 through December 2021, managers at Northwest Capital, along with other co-defendants, allegedly misled investors about critical facts, including conflicts of interest within the organization, the financial health of affiliated entities, and the true value of investments. Investigators allege that funds were manipulated to create an illusion of success, while investors received falsified annual statements to conceal the scheme’s reality.
Before investing, the Division encourages potential investors to call its Investor Protection Hotline at 877-683-7841 to ask the following questions:
• Is the securities professional, platform, or firm properly licensed to do business in Ohio?
• Is the security being promoted by the firm, platform, or the professional registered for sale in Ohio?
• Are there any enforcement actions involving the firm, professional, platform or securities product being promoted?
Ohioans with any questions or concerns about investments or financial advisers should contact the Division of Securities at 614-644-7381, securitiesgeneral.questions@com.ohio.gov, or by completing its online contact form at https://com.ohio.gov/divisions-and-programs/securities/contact-us/conta….