Post by Sapphire Capital on Jul 26, 2008 4:28:41 GMT 4
Friday, July 25, 2008
DAYTON — A Montgomery County Common Pleas judge has issued a preliminary injunction against the Dillabaugh Group and the estate of Roy Dillabaugh, who is accused of defrauding investors of nearly $11 million.
More than 100 people have filed nearly $11 million in claims against Dillabaugh's estate.
The injunction was requested by the Ohio Department of Commerce's Division of Securities. It prevents the defendants from disposing or dispersing any funds from Dillabaugh's life insurance policies.
The injunction will remain in effect until the court rules upon the state's request for a permanent injunction, appointment of a receiver and order of restitution.
Other defendants include Dillabaugh's widow Alice Jane, his son Lorne, a Dillabuagh administrative assistant Mary Johanna Long, and the Hartford Life and Accident Insurance Co.
In the complaint, the securities division asserted that the proceeds of the life insurance policies rightfully belong to the investors because the premiums were paid with fraudulently obtained investor funds.
According to spokesman Dennis Ginty, Dillabaugh used investor funds to pay for approximately 60 life insurance policies for himself.
The named beneficiaries of these policies – valued at approximately $11 million – are Dillabaugh's wife, Alice Jane Dillabaugh, his son, Lorne Lee Dillabaugh, and his secretary, Mary Johanna Long.
Roy Dillabaugh died on November 27, 2007. He had acted as CEO of The Dillabaugh Group, a Dayton business that purported to offer investment services.
Dillabaugh was a licensed insurance salesperson from 1985 until his death, but he had not been licensed to sell securities in Ohio since April 13, 2001, Ginty said.
From 1994 to 2007, Dillabaugh sold $12.4 million in "The Dillabaugh Group" securities to 146 investors, primarily from the Greater Dayton area and Indiana. None of the securities were registered with the Division of Securities, Ginty said.
The division alleges that Dillabaugh invested none of the investors' money and instead operated a Ponzi scheme which depended on new investments to pay the purported "interest" earned on earlier investments, Ginty said.
According to the terms of the preliminary injunction, the court restrained all but $500,000 of the insurance proceeds held by Alice Jane Dillabaugh. The court restrained most of the proceeds ($200,000) held by Lorne Dillabaugh, and all of the proceeds held by Mary Johanna Long.
DAYTON — A Montgomery County Common Pleas judge has issued a preliminary injunction against the Dillabaugh Group and the estate of Roy Dillabaugh, who is accused of defrauding investors of nearly $11 million.
More than 100 people have filed nearly $11 million in claims against Dillabaugh's estate.
The injunction was requested by the Ohio Department of Commerce's Division of Securities. It prevents the defendants from disposing or dispersing any funds from Dillabaugh's life insurance policies.
The injunction will remain in effect until the court rules upon the state's request for a permanent injunction, appointment of a receiver and order of restitution.
Other defendants include Dillabaugh's widow Alice Jane, his son Lorne, a Dillabuagh administrative assistant Mary Johanna Long, and the Hartford Life and Accident Insurance Co.
In the complaint, the securities division asserted that the proceeds of the life insurance policies rightfully belong to the investors because the premiums were paid with fraudulently obtained investor funds.
According to spokesman Dennis Ginty, Dillabaugh used investor funds to pay for approximately 60 life insurance policies for himself.
The named beneficiaries of these policies – valued at approximately $11 million – are Dillabaugh's wife, Alice Jane Dillabaugh, his son, Lorne Lee Dillabaugh, and his secretary, Mary Johanna Long.
Roy Dillabaugh died on November 27, 2007. He had acted as CEO of The Dillabaugh Group, a Dayton business that purported to offer investment services.
Dillabaugh was a licensed insurance salesperson from 1985 until his death, but he had not been licensed to sell securities in Ohio since April 13, 2001, Ginty said.
From 1994 to 2007, Dillabaugh sold $12.4 million in "The Dillabaugh Group" securities to 146 investors, primarily from the Greater Dayton area and Indiana. None of the securities were registered with the Division of Securities, Ginty said.
The division alleges that Dillabaugh invested none of the investors' money and instead operated a Ponzi scheme which depended on new investments to pay the purported "interest" earned on earlier investments, Ginty said.
According to the terms of the preliminary injunction, the court restrained all but $500,000 of the insurance proceeds held by Alice Jane Dillabaugh. The court restrained most of the proceeds ($200,000) held by Lorne Dillabaugh, and all of the proceeds held by Mary Johanna Long.