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. I keep wondering why I keep hearing about this problem of corporations leaving America, and I never hear a reasonable proposal to lower corporate tax rates and raise personal rates on income from capital gains and dividends, especially for high earners. It is just too simple of a solution for Congress to embrace?

  2. Are you financially down and you need money to settle your dept,or you need money to start up a business or to invest on a huge business,we also offer Loans to individuals, Firms and cooperate bodies at low interest rate , loan terms determinant,Loan amount between the sum of $5,000.00 to $100,000,000.00. US Dollars And Euro. Loan for developing businesses a competitive edge/ business expansion. We Offer The Following Kinds Of Loans. Personal Loans (Secure and Unsecured) Business Loans (Secure and Unsecured) Consolidation Loan FIRST INFORMATIONS NEEDED ARE: BORROWER’S DATA’S INFORMATION,FILL AND RETURN FOR QUICK START UP PROCESS. Name:_________ Last Name:_________ Age:_________ Contact Address:_________ Country:_________ Amount Needed as Loan:_________ Loan Duration:_________ Phone Number__________ Monthly Income/Yearly Income:_________ Purpose for Loan:_________ Occupation:_________ How Soon is Loan Needed__________ Email via: albertbrownfirm@outlook.com

  3. is a disaster. SR37 already needs to be built to interstate standards between 465 and SR144. Southport Road is a mess each morning and evening.

  4. Bass Pro Shops would be good for the mall as well as a Giant Eagle Market District or a Jungle Jim's International Market Place grocery store like the one near Cincinnati Ohio.A Disney quest indoor theme park would be good.An Academy outdoor store would be good too.Indoor Circus shows and magic shows would be good as well. A casino with sports bar would be good.A Disney theater inside that shows movies and Broadway shows would work.Nashville Tennessee concert shops with indoor neon lights would be good.How about a theater that shows travel shows and theme parks. A train store would be good.How about a giant toy store with high tech video games.

  5. This development is in addition to Allpoints Midwest 5, Aitrtek, a recent FedEx and more in Plainfield. Greenwood and Brownsburg also have similar projects.

ADVERTISEMENT