Warren County Prosecutor David P. Fornshell announced Tuesday, that two Ohio men have been indicted on fraud charges surrounding a fake medical marijuana operation. Fornshell said Aaron Pitman, 34, of Morrow, and Ryan R. Goldschmidt, 39, of Cincinnati, have been indicted on the following counts: four counts of aggravated theft, three counts of unauthorized use of property, three counts of telecommunications fraud, two counts of grand theft, three counts of unlawful securities practices, and one count of engaging in a pattern of corrupt activity. The men are accused of making misrepresentations to multiple victims to induce them to invest in a medical marijuana grow operation that Pitman and Goldschmidt claimed to be operating in California, as well as a CBD oil cartridge manufacturing business. The charges came as a result of a lengthy investigation by the Ohio Department of Commerce, Division of Securities, and the Ohio Bureau of Criminal Investigation, Forensic Accounting Division. According to court documents, Pitman and Goldschmidt are alleged to have defrauded investors through multiple business entities including Oak Street Group, GGB Assets, and Excelsior Leasing. Neither Pitman nor Goldschmidt are licensed to sell securities to investors in the state of Ohio or anywhere else, Fornshell said. Documents showed the two men misrepresented to investors that Goldschmidt was an attorney, and that they would get 100% of their money back, plus additional distributions of profit. “Investors need to ask lots of questions and do extra research before investing any money,” said Ohio Securities Commissioner Andrea Seidt. “Investors can call our Investor Protection Hotline at 877-683-7841 to find out if the person is licensed to sell securities and if the product is properly registered.” About $796.714 in investor funds were deposited into Warren County bank accounts controlled by Pitman and Goldschmidt, Fornshell said. Officials said the money was used for personal expenses of Pitman and Goldschmidt. In some cases, they diverted funds to pay off prior lawsuits or make payments to their friends. The Meigs County Sheriff’s Office said it was investigating Pitman on a different scheme, when some of the investors said that they had been defrauded by Pitman and Goldschmidt relating to a marijuana grow operation in California. The Meigs County Sheriff’s Office then referred the matter to the Ohio Bureau of Investigation for further investigation.
Warren County Prosecutor David P. Fornshell announced Tuesday, that two Ohio men have been indicted on fraud charges surrounding a fake medical marijuana operation.
Fornshell said Aaron Pitman, 34, of Morrow, and Ryan R. Goldschmidt, 39, of Cincinnati, have been indicted on the following counts: four counts of aggravated theft, three counts of unauthorized use of property, three counts of telecommunications fraud, two counts of grand theft, three counts of unlawful securities practices, and one count of engaging in a pattern of corrupt activity.
The men are accused of making misrepresentations to multiple victims to induce them to invest in a medical marijuana grow operation that Pitman and Goldschmidt claimed to be operating in California, as well as a CBD oil cartridge manufacturing business.
The charges came as a result of a lengthy investigation by the Ohio Department of Commerce, Division of Securities, and the Ohio Bureau of Criminal Investigation, Forensic Accounting Division.
According to court documents, Pitman and Goldschmidt are alleged to have defrauded investors through multiple business entities including Oak Street Group, GGB Assets, and Excelsior Leasing.
Neither Pitman nor Goldschmidt are licensed to sell securities to investors in the state of Ohio or anywhere else, Fornshell said.
Documents showed the two men misrepresented to investors that Goldschmidt was an attorney, and that they would get 100% of their money back, plus additional distributions of profit.
“Investors need to ask lots of questions and do extra research before investing any money,” said Ohio Securities Commissioner Andrea Seidt. “Investors can call our Investor Protection Hotline at 877-683-7841 to find out if the person is licensed to sell securities and if the product is properly registered.”
About $796.714 in investor funds were deposited into Warren County bank accounts controlled by Pitman and Goldschmidt, Fornshell said.
Officials said the money was used for personal expenses of Pitman and Goldschmidt. In some cases, they diverted funds to pay off prior lawsuits or make payments to their friends.
The Meigs County Sheriff’s Office said it was investigating Pitman on a different scheme, when some of the investors said that they had been defrauded by Pitman and Goldschmidt relating to a marijuana grow operation in California.
The Meigs County Sheriff’s Office then referred the matter to the Ohio Bureau of Investigation for further investigation.