Lordstown man faces securities fraud charges

Staff report

WARREN

A 52-year-old Lordstown man has been indicted on three counts of securities fraud.

David B. Zuppan of Malibu Drive will be arraigned on the charges at 1:30 p.m. Monday. If convicted, he could get up to 24 years in prison.

Zuppan’s indictment says he committed the crimes from Aug. 8 to 28, 2007. The value of the fraud was $50,000, the indictments says.

According to an Ohio Department of Commerce report, the agency issued a cease and desist order in September to Zuppan and his companies, Columbia Polymers Inc. and Hydrolock Basements Inc., which market a system to prevent water intrusion into basements.

The agency found that Zuppan received funds from investors in exchange for investments in Zup-pan’s company, but Zuppan did not inform the investors that their funds would be used to buy salon services for his wife, a wedding gift for his niece, college tuition for his daughter and payment for his personal debt to the Internal Revenue Service, the Ohio Department of Commerce said in a news release.

The investment offering also was never registered with the Division of Commerce, the agency said.