Ohio Residents Raymond Erker, Kevin Krantz and Tara Brunst Are Defendants In a Criminal Case Involving GenSource and Provident Investments
Raymond Erker, Kevin Krantz, and Tara Brunst have been named defendants in a recent criminal case filed against them on the allegations of running multiple fraudulent schemes, according to public records under review by investment loss attorney Alan Rosca. The investigation reveals that between 2013 and mid 2018, Erker, Krantz and Brunst allegedly engaged in fraud by selling investments in companies like GenSource and Provident, obtaining more than $9.3 million from 54 victims.
The team of investment loss lawyers at Rosca Scarlato LLC, led by attorney and securities law professor Alan Rosca, is investigating the alleged scheme involving GenSource and Provident investments sold by Raymond Erker, Kevin Krantz, and Tara Brunst. Gensource and Provident investors are encouraged to call 888-998-0530, send an email at arosca@rscounsel.law, or use the contact form on this page for a free, no obligation discussion about their case.
Raymond Erker, a Former Broker and Investment Adviser, Was In Control of Multiple Investment and Asset Management Companies
Raymond Adam Erker is a former stockbroker and a previously registered investment advisor whose last registration was with Allstate Financial Services, LLC. He has been a broker registered with the Financial Industry Regulatory Authority (FINRA) member firms since end of 1998, when he passed his Series 6 Exam.
With his business office located in Westlake, Ohio, Raymond Erker owned and operated multiple companies. The indictment list the following:
- Sageguard, LLC;
- Sageguard Consulting, LLC;
- Sageguard Sourcing, LLC;
- Sageguard Technology, LLC;
- Sageguard Venture, LLC;
- Sageguard Solutions, LLC; and
- Sageguard Wealth Management, Inc.
Allegedly, the above mentioned companies were formerly known as Raymond A. Erker, Inc.. The indictment also mentions GenSource Financial Assurance Company LLC, and Provident Securities LLC as companies under Erker’s alleged control.
Erker’s Co-Defendants Tara Brunst and Kevin Krantz owned interest in Erker’s Companies
Tara Michelle Brunst (also know under multiple aliases such as Tara Michelle Alofaituli, Tara Michelle Daw, Tara Michelle Mckenzie, and Tara Mckenzie) is a Cuyahoga County resident and a former registered broker and investment advisor. Between 5th May 2014 and 8th July 2015, Brunst was registered with PNC Investments, a FINRA member.
According to the indictment, Tara Brunst was employed at one of the Safeguard Companies as an investment adviser representative, and allegedly she owned an interest in GenSource Financial Assurance Company.
Kevin M. Krantz, also a Cuyahoga County resident, was a CPA licensed in Ohio. It is alleged that he acted as Chief Financial Officer for the Safeguard Companies, in which he also owned an interest, the indictment states.
Erker, Brunst, and Krantz Face Allegations of Fraud and Money Laundering for Offering and Selling Investments in GenSource and Provident
Publicly available records reviewed by the investment loss lawyer Alan Rosca, found that the criminal action instituted against Raymond Erker, Kevin Krantz and Tara Brunst was filed before the United States District Court for the Northern District of Ohio Eastern Division.
According to the Indictment, Erker, Krantz, and Brunst allegedly combined and conspired to commit federal offenses which was to devise a scheme and artifice to defraud investors of their money and properties by means of false and fraudulent pretenses, representations and promises.
As part of the conspiracy, the above mentioned defendants allegedly offered and sold investments in GenSource and Provident Securities Co to at least 54 investors. The investments sold were allegedly amounting to approximately $9,366,976.37. The Indictment further alleged that the previously registered brokers made false and fraudulent misrepresentations to the effect that they were purchasing annuities and senior secured notes in the companies and the investments allegedly had no exposure to risk of loss and had guaranteed rates of return. These were allegedly untrue as the investors funds were invested into high risk startups.
“Ponzi Scheme” Allegations
The Indictment further describes the operation under Erker, Krantz, and Brunts‘s control as a “Ponzi scheme”. This was based on the allegation that after misrepresenting to the investors that their funds would be used for safe and reliable investments, their funds were allegedly diverted to Raymond Erker’s personal bank accounts. In addition, the funds from new investors were allegedly diverted and used to pay old investors whose payments were due, the indictment states.
It was further alleged that in a bid to make their investment scheme appear legitimate, Raymond Erker, Kevin Krantz and Tara Brunst set up office fronts in Delaware and Nevada, while also creating false brochures, websites and account documents. They also allegedly contracted with call centers.
Brunst allegedly solicited at least 10 individuals to invest about $1,200,000 in GenSource and Provident Securities while omitting to make material information known to the investors. Kevin Krantz also allegedly caused interstate wires and transfers of investors’ funds into the Safeguard companies, personal bank accounts of Raymond Erker and also to pay prior investors.
Finally, it is important to note that, as of the date of this article, there has not been a finding of liability as to the complaints or allegations mentioned in this article, unless otherwise indicated. Any reader should also read the original sources hyperlinked in this blog for accuracy, including any BrokerCheck report and/or record of any disciplinary or regulatory action. Those sources are incorporated by reference into the text of this blog, and are the governing materials in case of any inconsistencies or typos in this blog.
Potential Options for Investors in GenSource Financial Assurance Company and Provident Securities
Rosca Scarlato LLC attorneys for investment loss often represent investors who lose money as a result of investment-related fraud or broker misconduct and are currently investigating the allegations of fraud brought against Raymond Erker, Kevin Krantz, and Tara Brunst. Cases like this are often taken on a contingency fee basis, which means that the firm advances the case costs, and only gets paid for their fees and costs out of money recovered for clients. Attorney Alan Rosca, a securities lawyer and adjunct professor of securities regulation, has represented thousands of victimized investors across the country and around the world in cases ranging from arbitrations to class actions.
GenSource investors and Provident Securities investors who believe they lost money as a result of alleged fraudulent misconduct perpetrated by Raymond Erker, Kevin Krantz, and Tara Brunst, may contact attorney Alan Rosca for a free no-obligation evaluation of their recovery options, at 888-998-0530, via email at arosca@rscounsel.law, or through the contact form on this webpage.
