A Gahanna couple is indicted on 47 counts and is accused of defrauding more than 50 people out of more than $25 million.
NBC 4 reported with the FAST FACTS from United States Attorney Carter M. Stewart.
A federal grand jury has charged Michael Spillan, 43, and his wife, Melissa Spillan, 40, in a 47-count indictment, alleging they defrauded more than 50 victims out of more than $25 million through a series of fraudulent, stock-based loan schemes.
FBI agents arrested the couple at their home Gahanna Friday.
The indictment alleges the Spillans owned several companies, including One Equity Corporation; Triangle Equities Group, Inc.; Victory Management Group, Inc. and Dafcan Finance, Inc.
The Spillans would entice investors to participate in stock-based loan and other financing agreements from their offices in Westerville, the indictment said.
The defendants would lend funds in exchange for shares of stock the defendants agreed to hold as collateral for repayment of the loan.
The indictment alleges the Spillans, unbeknownst to the borrowers, generally sold all the shares they received and used the proceeds for their personal gain.
The indictment alleges that between 2003 and 2006 the defendants generated approximately $25 million in proceeds from at least 50 victims.
The indictment also charges that Michael recruited investors for a "stock-option investment program" in which investors would typically give him between $5,000 and $20,000 that he promised would be pooled with others investors' funds and buy stock options from corporate executives who wanted to cash out stock options they had received as part of their compensation packages.
Spillan is accused of not investing the money in stock options, paying returns on only a few investments and keeping the remainder of the money for his personal use and benefit.
The indictment also accused the Spillans of making false statements in a bankruptcy filing on May 6, 2009, by substantially understating their income for 2007.
Conspiracy to commit securities fraud and wire fraud is punishable by up to five years imprisonment.
The indictment contains 11 counts of securities fraud, seven counts of wire fraud, two of which are against Michael Spillan only, and 13 counts of mail fraud, two of which are against Michael only, each punishable by up to 20 years imprisonment.
The indictment charges 14 counts of money laundering, punishable by up to 10 years imprisonment.
Making a false oath under bankruptcy is punishable by up to five years imprisonment.
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