HAMMOND- George McKown, 70, of Indianapolis, Indiana, was convicted Friday, Oct. 29, 2021, after a 5-day jury trial before United States District Court Judge Philip P. Simon, announced United States Attorney Clifford D. Johnson.
According to documents in the case, McKown was charged with conspiracy to commit securities fraud and wire fraud. George McKown and co-defendant, Richard Gearhart, sold securities to people who invested their traditional retirement accounts, pensions, annuities, and cash with the defendants’ company, Asset Preservation Specialists. McKown and Gearhart promised investors a six to eight percent return on their investment and ensured liquidity. McKown and Gearhart provided investors fraudulent monthly statement showing positive returns on their investments when, in reality, they were actually losing money. Without the investors’ knowledge or consent, McKown and Gearhart used investors’ money to fund various business ventures in which McKown, Gearhart, or both had an interest. The loss to the investors was over five million dollars.
In July 2021, Gearhart pled guilty and was sentenced to five years in prison and ordered to pay more than $5.3 million in restitution. McKown’s sentencing is scheduled for February 8, 2022. Any specific sentence to be imposed, will be determined by the judge after consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This case was the result of a joint investigation by the United States Postal Inspection Service, the Federal Bureau of Investigation, and the Indiana Secretary of State Securities Division. This case is being prosecuted by Assistant U.S. Attorneys Toi D. Houston and Thomas M. McGrath.
Source: U.S. Department of Justice, Office of the United States Attorneys
