November 12, 2014– The FBI issued a press release announcing that Donald Ray Babb, 58, of Merritt Island, FL, and Ralph Victor Ruth, 61, of Melbourne, FL, pleaded guilty to conspiracy to commit wire fraud.
Babb and Ruth operated their scheme through Southeast Mutual Insurance and Investment, Capstar Industries and First Merchant Capital which they represented as licensed financial institutions selling risk-free CDs. No CDs were ever purchased as the two operated a classic Ponzi scheme using money from new investors to pay “returns” to earlier investors, and spending the rest on real estate and personal expenses.
They face a maximum of 20 years in federal prison.
Rex Securities Law provides nationwide representation to investors seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.
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