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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. Again, Maria.... how much are YOU contributing? The man doesn't HAVE to give a red cent! What don't you get about that? And, I know this might actually require some actual "facts", but can you please point me to the parking garage that the city gave to him?

  2. Another internet tuff guy I see. And what would the basis of taking the person to jail? If they were drunk, yea. But if not, there would be no jailable offense. All these gestapo, Nazi, jackboots are running SCARED. When the SHTF in this country who's side are you going to be on? The citzens, or the establishment? Better make up your mind quick because it's not far off. I would rather be trying to make friends than enemies. But no worries my "friend", God will take care of you and your likes in good time. It tells us that in the bible. If you stand, support and help carry out the plans of evil rulers, you will NOT be spared the wrath of God. That simple. All you can do is repent now and ask God to forgive you.

  3. Yes, Ersal, thank you for donating a whole $75,000, while the city gives you a parking garage for free and is going to pay for a multi million dollar stadium for you. I'd be donating money too if I was on welfare.

  4. I live and work in Broad Ripple and agree 100% that the traffic is not a significant problem. It can be slow at some times, but hey...this is an urban area. As for the development itself...HOORAY. Office and retail development brings people during the day, something that our community needs much more of. Thank goodness people are finally waking up to take advantage of the serene White River views. The BRVA land us committee endorsed the project because they know how these kind of projects help offset the cries of "too many bars". Pray that this development, and the proposed major investment by Browning, move forward. And remember Good Earth, these will mean hundreds of daytime people - potential shoppers for your store.

  5. Under current, previous existing law, this new law would be unconstitutional. Not that supposedly having to have a driver's license to drive isn't in the first place.

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