Guilty plea in Ponzi scheme; Company settles lawsuit

first_imgBROOKVILLE, Ind. – A Brookville man has pleaded guilty to multiple felony counts related to an $8.9 million Ponzi scheme in Indiana, Ohio and Kentucky.Jerry Smith admitted guilt to five counts of criminal securities fraud and faces two to eight years on each count, according to the Brookville Democrat.Circuit Court Judge Clay Kellerman could sentence Smith between two and 40 years in prison on Wednesday, December 2.Smith is currently serving a five year prison sentence after reaching a plea agreement in federal court in 2012.Court documents show Smith and Jason Snelling ran a scheme selling unregistered investments while working as a registered representative for OneAmerica Securities.OneAmerica recently agreed to pay over $800,000 to settle a lawsuit accusing the company of not properly supervising Smith and Snelling, when they were employed there.The company stated they were not liable but settled the suit for financial reasons.Snelling has also pleaded guilty to federal and state charges. Judge Kellerman sentenced Snelling to a 40-year prison sentence.last_img