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Hendricks County man sentenced for Ponzi scheme

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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.

 
 

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  1. So much for Eric Holder's conversation about race. If white people have got something to say, they get sued over it. Bottom line: white people have un-freer speech than others as a consequence of the misnamed "Civil rights laws."

  2. I agree, having seen three shows, that I was less than wowed. Disappointing!!

  3. Start drilling, start fracking, and start using our own energy. Other states have enriched their citizens and nearly elminated unemployment by using these resources that are on private land. If you are against the 'low prices' of discount stores, the best way to allow shoppers more choice is to empower them with better earnings. NOT through manipulated gov mandated min wage hikes, but better jobs and higher competitive pay. This would be direct result of using our own energy resources, yet Obama knows that Americans who arent dependent of gov welfare are much less likely to vote Dem, so he looks for ways to ensure America's decline and keep its citizens dependent of gov.

  4. Say It Loud, I'm Black and Ashamed: It's too bad that with certain "black" entertainment events, it seems violence and thuggery follows and the collateral damage that it leaves behinds continues to be a strain on the city in terms of people getting hurt, killed or becoming victims of crimes and/or stretching city resources. I remember shopping in the Meadows area years ago until violence and crime ended make most of the business pack you and leave as did with Lafayette Square and Washington Square. Over the past 10 to 12 years, I remember going to the Indiana Black Expo Soul Picnic in Washington Park. Violence, gang fights and homicides ended that. My great grandmother still bears the scares on her leg from when she was trampled by a group of thugs running from gun fire from a rival gang. With hundreds of police offices downtown still multiple shootings, people getting shot downtown during Black Expo. A number of people getting shots or murdered at black clubs around the city like Club Six on the west side, The Industry downtown, Jamal Tinsley's shot out in front of the Conrad, multiple fights and shootings at the skating rinks, shootings at Circle Center Mall and shooting and robberies and car jackings at Lafayette Mall. Shootings and gang violence and the State Fair. I can go on and on and on. Now Broad Ripple. (Shaking head side to side) Say It Loud, I'm Black and I'm Ashamed.

  5. Ballard Administration. Too funny. This is the least fiscally responsive administration I have ever seen. One thing this article failed to mention, is that the Hoosier State line delivers rail cars to the Amtrak Beech Grove maintenance facility for refurbishment. That's an economic development issue. And the jobs there are high-paying. That alone is worth the City's investment.

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