Former Toledo Investment Adviser is Third to Plead Guilty in Massive $72 Million Ponzi Scheme

COLUMBUS, Ohio - The Ohio Department of Commerce Division of Securities announced today 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 today 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 last 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 advisors should contact the Division of Securities at 614-644-7381, [email protected], or by completing its online contact form here.

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About the Division of Securities
The Division of Securities is part of the Ohio Department of Commerce. The department is Ohio's chief regulatory agency, focused on promoting prosperity and protecting what matters most to Ohioans. We ensure businesses follow the laws that help them create jobs and keep Ohioans safe. To learn more about what we do, visit our website at com.ohio.gov.