LAWSUITS NEWS & LEGAL INFORMATION
Investment Scheme
Charleston, WV: (Mar-19-08) The US Securities and Exchange Commission (SEC) brought a lawsuit against New Haven resident Ralph Gibbs, alleging that he defrauded investors of $21 million, in a Ponzi scheme. The commission's lawsuit claimed that the West Virginia man raised funds through his Golden Summit Group by promising investors large returns and guaranteeing the return of their principal investments. Over 150 investors were victimized in the scheme, many of whom were retirees living on fixed incomes.
Sources stated that in a recent development in the case, Ralph Gibbs agreed to a settlement, in which he will pay more than $4 million in cash to settle civil fraud charges. Commission spokespersons stated that the settlement will help at least 150 investors in 25 states to recover a fraction of their losses. Additionally, the 56-year-old Gibbs pleaded guilty to a related criminal count of mail fraud in federal court in Virginia. Legal sources say that Gibbs faces up to 20 years in prison and a $250,000 fine when he is sentenced on Jun. 27, 2008. [WAVY TV NEWS: WEST VIRGINIA MAN SETTLES FRAUD CASE WITH SEC]
Published on Mar-20-08
Sources stated that in a recent development in the case, Ralph Gibbs agreed to a settlement, in which he will pay more than $4 million in cash to settle civil fraud charges. Commission spokespersons stated that the settlement will help at least 150 investors in 25 states to recover a fraction of their losses. Additionally, the 56-year-old Gibbs pleaded guilty to a related criminal count of mail fraud in federal court in Virginia. Legal sources say that Gibbs faces up to 20 years in prison and a $250,000 fine when he is sentenced on Jun. 27, 2008. [
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