A Toledo investment firm executive has pleaded guilty to charges related to a decade-long Ponzi scheme. Richard Scheich, an executive involved with multiple entities in the Northwest Capital scheme, admitted guilt in Lucas County Common Pleas Court.
Scheich was charged through a bill of information, which is a formal accusation presented by a prosecutor. This serves the same purpose as an indictment issued by a grand jury in felony cases.
The charges against Scheich include two counts of conspiracy to engage in a pattern of corrupt activity and three counts of sale of an unregistered security. According to court documents, Scheich created false invoices to secure funding from lending institutions. This funding was used to pay investors in companies linked to Northwest Capital and entice further investments into the fraudulent scheme.
It is estimated that Scheich defrauded nearly $9 million from investors. The broader case involving all co-defendants includes fraudulent investments totaling $72 million.
As part of his plea agreement, Scheich will cooperate with the ongoing investigation and testify against co-defendants. His sentencing will be scheduled after these cases are concluded.
The investigation was conducted by the Ohio Department of Commerce’s Division of Securities and the Ohio Attorney General’s Bureau of Criminal Investigation. The Special Prosecutions Section of the Attorney General’s Office is handling the prosecution.
