(TOLEDO, Ohio) — The former chief compliance officer of a troubled investment firm today admitted his involvement in a scheme to deceive and defraud investors of millions of dollars, Ohio Attorney General Dave Yost announced.
John Walters, of Perrysburg, pleaded guilty to one count of false statement in sale of a security and four counts of securing writings by deception. The charges range from second- to fourth-degree felonies.
Walters is among multiple defendants indicted in July 2024 in connection with Northwest Capital, a Toledo investment firm that served as an intermediary between investors and businesses, raising capital by selling accounts receivable.
He was part of a scheme spanning from 2011 to 2021 to deceive lending institutions and a business investor in transactions accounting for millions of dollars. Writings – in the form of loans and investments – were obtained by presenting fraudulent and inaccurate documents. As chief risk officer for Northwest Capital, Walters signed off on the fraudulent documents. The money was improperly diverted by the enterprise to other businesses associated with the firm as part of a scheme involving more than 700 investments from at least 200 people who were ultimately defrauded of $72 million. He took part in nearly $9 million of fraud.
Walters’ sentencing is scheduled for 9 a.m. on May 18 in Lucas County Common Pleas Court.
Sentencing dates for other defendants are also scheduled this month or next:
On April 27, prosecutors dismissed 24 felony charges against an additional defendant, Gary Rathbun, after learning of his death midtrial. A related case involving defendants Bradley Konerman and Adam Salon is pending in Hamilton County Common Pleas Court.
The cases are the culmination of a multiyear investigation by the Ohio Department of Commerce’s Division of Securities and the Attorney General’s Bureau of Criminal Investigation.
Yost’s Special Prosecutions Section is prosecuting the cases.
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Steve Irwin: 614-728-5417
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