The owner of an Owensboro-based capital management company has pled guilty in United States District Court to all eleven counts of a superseding indictment, announced David J. Hale, United States Attorney for the Western District of Kentucky. Cory B. George, age 27, of Owensboro, and formerly of Sturgis, pled guilty to devising a scheme to defraud investors in G3 Capital Management and to obtain money and property by means of false and fraudulent pretenses and agreed to forfeit proceeds from the offenses to the United States.
According to court records, George defrauded investors bof more than $1.5 million by advertising in local newspapers short term Certificates of Deposit guaranteed by the Securities Investor Protection Corporation (SIPC). Investors who invested in the CD’s offered by George and G3 Capital Management were told that SIPC insurance was equivalent to FDIC insurance, and that the principal of their investment was safe.
However, George didn't invest in CDs; instead, he used the money for trading in the commodities market or for personal expenses such as shopping, traveling, and gambling.