Two men enter not-guilty pleas in $14M Ponzi scheme in federal court

YOUNGSTOWN — Two men pleaded innocent in federal court here to all 30 counts in an alleged $14 million Ponzi scheme, which solicited Youngstown-area investors.

Edward A. Allen, 35, and David L. Olson, 60, both of Lakeland, Fla., entered their pleas today during their arraignment before U.S. District Judge Benita Y. Pearson,

A federal grand jury indicted Allen and Olson on charges of conspiracy, securities, mail and wire fraud, and money laundering, with the alleged offenses occurring between 2006 and 2009.

The indictment said Allen and Olson were partners in A&O Companies, which solicited investors in the Youngstown area and from Florida, Texas and Arizona.

Investors were told A&O’s purpose was to buy residential real estate and sell it at a profit, said U.S. Attorney Steven M. Dettelbach.

In fact, the investments were used to pay company employees’ salaries, personal expenses and purported interest payments to various investors and mortgage payments on real estate purchased on behalf of A&O by investors, the indictment says.

Allen and Olson promised investors a high rate of return, in one case up to 45 percent, through monthly interest payments and gave them promissory notes totaling $14 million, the U.S. Attorney said.

For the complete story, read Wednesday's Vindicator and Vindy.com