IBJNews

Hendricks County man sentenced for Ponzi scheme

Back to TopCommentsE-mailPrintBookmark and Share

A Brownsburg businessman will serve two years in prison and 14 years on probation for his role in stealing $1.5 million from 24 investors in Johnson and Hendricks Counties, as well as Colorado.

Ryan W. Koester, owner of Rykoworks Capital Group LLC, also was ordered to pay more than $517,000 in restitution, to be paid monthly.

Johnson County Judge Mark Loyd sentenced Koester on Thursday. He also ordered Koester to undergo a psychological evaluation with the possibility of counseling.

Koester pleaded guilty in November 2013 to four class C felony securities fraud violations.

According to the Indiana Secretary of State's office, Koester solicited clients through Rykoworks, claiming to be an expert in foreign commodities trading. He told clients he would invest their funds in foreign markets, but instead, used them for personal living expenses and risky Internet trading.

Koester was never licensed to sell securities in Indiana and had no financial trading education. He scammed clients by guaranteeing their initial investment and high return rates.

The state said one of Koester's victims was a college fraternity brother.

“This case is a classic example of a Ponzi scheme,” Secretary of State Connie Lawson said in a prepared statement. “Preying on personal relationships with his victims, Koester manipulated the facts and his expertise.  He even went so far as to use social media to solicit new clients to scam. "

 Lawson said Koester's scams would have been uncovered earlier if somebody would have looked closer at his financial proposals.

“Unfortunately, the warning signs were there," she said. "Neither he nor his products were licensed.  If only one investor would have called my office or checked our online database, the scheme would have crumbled."

Koester's scheme also involved Trafalgar insurance salesman Rudolf D. Pameijer and Pameijer's daughter, Lindsay R. Sayer, who entered into a settlement with the Securities & Exchange Commission in 2012.

Pameijer faces a pretrial hearing Feb. 6 on criminal charges, with a trial date set for Feb. 25.

 
 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. The $104K to CRC would go toward debts service on $486M of existing debt they already have from other things outside this project. Keystone buys the bonds for 3.8M from CRC, and CRC in turn pays for the parking and site work, and some time later CRC buys them back (with interest) from the projected annual property tax revenue from the entire TIF district (est. $415K / yr. from just this property, plus more from all the other property in the TIF district), which in theory would be about a 10-year term, give-or-take. CRC is basically betting on the future, that property values will increase, driving up the tax revenue to the limit of the annual increase cap on commercial property (I think that's 3%). It should be noted that Keystone can't print money (unlike the Federal Treasury) so commercial property tax can only come from consumers, in this case the apartment renters and consumers of the goods and services offered by the ground floor retailers, and employees in the form of lower non-mandatory compensation items, such as bonuses, benefits, 401K match, etc.

  2. $3B would hurt Lilly's bottom line if there were no insurance or Indemnity Agreement, but there is no way that large an award will be upheld on appeal. What's surprising is that the trial judge refused to reduce it. She must have thought there was evidence of a flagrant, unconscionable coverup and wanted to send a message.

  3. As a self-employed individual, I always saw outrageous price increases every year in a health insurance plan with preexisting condition costs -- something most employed groups never had to worry about. With spouse, I saw ALL Indiana "free market answer" plans' premiums raise 25%-45% each year.

  4. It's not who you chose to build it's how they build it. Architects and engineers decide how and what to use to build. builders just do the work. Architects & engineers still think the tarp over the escalators out at airport will hold for third time when it snows, ice storms.

  5. http://www.abcactionnews.com/news/duke-energy-customers-angry-about-money-for-nothing

ADVERTISEMENT