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New details emerge in case of alleged Ponzi scheme

Published: Tuesday, April 28, 2015 @ 11:22 PM
Updated: Tuesday, April 28, 2015 @ 11:22 PM

An updated federal complaint that accuses a couple of operating Ponzi-type pyramid schemes alleges there are 450 victims who invested at least $84 million and lost more than $30 million.

The documents, written by an FBI agent and attached to a civil forfeiture complaint of William Apostelos’ assets, provides new details about how the alleged scheme fell apart and says Apostelos and his employees went to extraordinary lengths to avoid angry investors.

The seizures from Apostelos, his wife Connie and her son include two race horses, racing proceeds, bank accounts and cash totalling about $650,000 plus vehicles, jewelry and artwork.

Apostelos faces a forced bankruptcy case, a separate civil case in Dayton’s U.S. District Court and this forfeiture action.

Some of the findings from an updated criminal complaint and affidavit filed in Dayton’s U.S. District Court this month include:

  • Spending reportedly included $400 per month on Victoria Secret’s lingerie and $35,000 per month on Connie Apostelos’ horse racing company.
  • William Apostelos diverted $17 million into his personal accounts from the proceeds of a Ponzi scheme he allegedly ran out of his office in Springboro.

 

William and Connie Apostelos, and others listed in the complaint have not been charged with a crime.

When the allegations surfaced in court documents last fall, federal officials said the couple swindled “north of $50 million” from 160 Miami Valley investors in Ponzi-type financial pyramid schemes, using the money to fund an extravagant lifestyle that included buying racehorses and a $1 million farm in Clark County.

Pamela Stanek, assistant U.S. attorney, who would not confirm nor deny if an indictment is pending.

Apostelos’ attorney, Dwight Brannon, did not return a message Tuesday from the Dayton Daily News seeking comment.

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Report: Gunman demands drugs from Rite Aid in Harrison Twp.

Published: Friday, June 22, 2018 @ 7:17 PM

Robbery

An armed suspect demanded drugs and threatened employees tonight during a robbery at a Rite Aid pharmacy.

The robbery was reported around 7 p.m. at the business, 4328 N. Main St. in Harrison Twp.

>> ‘He showed us a gun:’ Robbery victims testify in teen’s carjacking case

According to scanner traffic, the suspect threatened: “give me the drugs or I’ll kill you.”

Montgomery County Sheriff’s deputies were dispatched, and we have a crew on the way.

Got a tip? Call our monitored 24-hour line, 937-259-2237, or send it to newsdesk@cmgohio.com

Robbery

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Georgia man admits he had 50 pounds of hydroponic pot in Piqua traffic stop

Published: Friday, June 22, 2018 @ 7:02 PM

Kasheem Hill
Kasheem Hill

A Georgia man who troopers said had 50 pounds of hydroponic marijuana in his vehicle when stopped on Interstate 75 north of Piqua in January pleaded guilty Friday to felony drug possession.

Kasheem Hill, 26, of Marietta, Ga., was arrested following the stop on suspicion of possession of marijuana and possession of criminal tools, according to the Ohio State Highway Patrol. 

A patrol K-9 alerted to the vehicle after responding to the scene and a probable cause search uncovered the hydroponic pot being carried in duffel bags and a large plastic bag, troopers said. 

Hydroponics is the practice of growing plants in either a bath or a flow of oxygenated, nutrient-enriched water.

RELATED: Troopers seize 50 pounds of marijuana in Miami County

Hill waived a grand jury hearing of allegations against him and pleaded guilty Friday to one felony charge in Miami County Common Pleas Court. A presentence investigation was ordered and sentencing scheduled Aug. 10.

Hill was released from the Miami County Jail on a recognizance bond pending sentencing.

Got a tip? Call our monitored 24-hour line, 937-259-2237, or send it to newsdesk@cmgohio.com

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Retired Troy firefighter, and now a co-defendant, accused in rape case

Published: Thursday, June 21, 2018 @ 7:08 PM
Updated: Friday, June 22, 2018 @ 10:50 AM

Retired Troy firefighter arrested for rape, son arrested hours later

UPDATE @ 10:20 a.m. (June 22): A retired Troy firefighter and a co-defendant remain in jail on a rape charge, while the former firefighter's son also remains in jail on a weapons charge. 

Jeffrey Paul Covault, 48, had his bond set at $200,000 cash on a single count of rape. His plea of not guilty was taken this morning. 

Thomas Perkins Jr., 54, identified as a co-defendant in the rape case, had his bond set at $200,000 as well. According to authorities, Perkins worked for Jeffrey Paul Covault's lawn care business. 

Aaron Jacob Covault, 24, had his bond set at $22,000 cash during his court appearance via video in Miami County Municipal Court. 

He is detained in the Miami County Jail on charges of weapon possession as a felon (a felony) and weapons possession while intoxicated (a misdemeanor).

Aaron Jacob Covault, left, and Jeffrey Paul Covault

The elder Covault and Perkins are accused of engaging in sexual conduct with an intoxicated 21-year-old woman on March 2, in the parking lot of The Vault, on North County Road 25A, county Prosecutor Tony Kendell said. According to the indictment, the victim was impaired because of a mental or physical condition and the alleged perpetrators had cause of know of that impairment.

Common Pleas Judge Christopher Gee issued a “no contact order” for the elder Covault and Perkins, meaning they are to have no contact with the alleged victim or with each other.

The elder Covault worked as a Troy firefighter/paramedic from May 1996 until he retired April 1, according to city personnel records.

A criminal records check shows he has been convicted for operating a vehicle under the influence in 2011 and for disorderly conduct in 2012.

The father and son were arrested hours apart Thursday from the same home, a residence in the 700 block of County Road 25A, north of Troy.

Aaron Jacob Covault, was arrested at the same address hours after his father was taken into custody. Police said the younger Covault was upset over the arrest of his father and discharged a gun.

>> TRENDING: Kettering officer-involved shooting: Man shot by officer, gun recovered

There were no report of injuries.

>> Suspect in Seattle homicide arrested in raid in Dayton

Got a tip? Call our monitored 24-hour line, 937-259-2237, or send it to newsdesk@cmgohio.com

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Kettering officer shot passenger from stopped vehicle who refused to drop gun

Published: Thursday, June 21, 2018 @ 9:00 PM
Updated: Friday, June 22, 2018 @ 3:30 PM

Kettering police officer-involved shooting in Dayton wounds 1

One man was shot and injured in a police officer-involved shooting Thursday night in Dayton:

  • The passenger ran from a traffic stop at Smithville Road and Ewalt Avenue
  • A Kettering police officer chased the armed passenger; the driver was released
  • The officer shot and wounded the passenger when he would not drop the gun 

UPDATE @ 3:30 p.m.: 

The passenger, identified as 31-year-old Wayne Morgan, was shot when he refused the Kettering police officer’s order to drop a handgun he was holding, Kettering Police Chief Christopher “Skip” Protsman said at a news conference held at Kettering Fire Department Headquarters.

Morgan had run from the stopped vehicle, and then broke away from the officer during a confrontation with the officer a short distance from the stopped vehicle.

Protsman said the officer, while giving chase on foot, saw that Morgan had a handgun and ordered him to drop it. Morgan ran into an alley and turned quickly toward the officer, who fired at least once when he thought he was forced to defend himself.

Morgan, hit in the arm and side, remains in a hospital. His injuries are believed to be non-life-threatening.

The driver of the car police stopped was not charged and has been released, the chief said.

The officer’s name is not being released, the chief said.

The city of Dayton will handle the criminal investigation. Kettering police are doing an administrative review of this case. The Kettering officer who shot Morgan is on paid administrative leave.

UPDATE 11:30 a.m.: 

Kettering police Lt. Michael Gabrielson said he’s working on downloading the cameras and radio traffic from the shooting and there might be video and audio available of what happened available later today.

The Dayton Police Department is conducting a separate investigation into the incident, he said.

A Kettering police officer tried to pull over a vehicle at Smithville Road and Ewalt Avenue on Thursday night. Within one minute, at 8:45 p.m., the officer reported shots fired. A call for officer needs assistance was issued to surrounding agencies, according to information from the Kettering Police Department.

>> DASH CAM: Man shot, injured by Dayton officer ID’d

“We can confirm a Kettering officer was involved in an officer-involved shooting as a result of this traffic stop. No further details are being released at this time,” Lt. Gabrielson stated in the release.

The traffic stop was initiated in Kettering, but the shooting happened in Dayton.

“A passenger fled. There was an altercation about a block down the street and a Kettering officer fired at the suspect, wounding him,” said Mark Ecton, Dayton assistant police chief and deputy director.

The driver is in custody, he said.

It’s not clear how many shots were fired or whether the suspect fired at the officer but a weapon was recovered, Ecton said.

>> WATCH: Police shocked during scuffle in Dayton, officers injured

(MICHAEL BURIANEK / STAFF)

The man was taken to a hospital. We’re working to learn more on his condition. The officer was not injured.

>> No criminal charges for Miami Twp. officer in 2017 fatal shooting

The investigation has not mentioned whether the incident was connected to a hit-and-run crash nearby.

Nick Kauffman of Kettering said he was on his way to a motorcycle ride when his path was blocked by all the police activity.

“It’s pretty wild. You don’t expect to see this stuff outside your back door,” he said.

There were officers from at least three police departments.

Got a tip? Call our monitored 24-hour line, 937-259-2237, or send it to newsdesk@cmgohio.com

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