BRUNSWICK, Ohio — Vivian McLaughlin believed the best in a former classmate.
She even trusted him with her parent’s savings and invested more than $250,000 with him.
“Basically, grew up together, hung out all the time,” McLaughlin said. “Why wouldn’t they go with someone they trust, someone who was well-qualified? Ray had done very well for himself up to that point,” she explains.
Little did she know that Ray Erker, their financial advisor, would later be charged in a so-called Ponzi scheme.
McLaughlin’s money is now long gone. And she is not alone. Federal investigators revealed that 54 investors are out more than $9.3 million.
The details came to light recently in a new indictment charging Ray Erker, Kevin Krantz, and Tara Brunst of conspiracy “...to obtain money and property…by means of false and fraudulent pretenses,” the document read.
From 2013 to 2018, the feds say the three sold investments to companies such as GenSource Assurance and Provident Securities, which Erker owned, promising a return.
The money from new clients would then go to pay earlier investors. According to the indictment, there were even false brochures and account statements.
McLaughlin said she did not suspect anything was wrong and now hopes for changes in the industry.
“If I couldn’t trust a friend of almost 40 years with my parents’ money, who do you trust?” she asked.
Erker has been stripped of his investment advisor license. He and his two former colleagues are expected in federal court later this month.
3News was unable to reach them for comment.
Read the fill statement from Vivian McLaughlin below:
"I have many mixed emotions right now, one of definite relief that Erker has been indicted after a two year investigation, but also, a feeling of anger that he has been living life free of consequence for years including these last two. It’s time for him to be held accountable.
With regards to Krantz and Brunst, it makes me sick to my stomach that neither had felt the need to do the legal and right thing. They, like Erker, have benefitted from their evil acts without batting an eye. The fact that the victims are all elderly makes it that much worse. We should care for the elderly not steal, lie, and humiliate them.
I am heartbroken for all 54 elderly victims. Life happens to all of us. The sustainability of knowing that they finally reached a point in their lives where there is no perceived financial burden was torn away from them overnight. It is somewhat ironic that these federal charges were filed near Labor Day, as these 54 individuals labored their entire lives only to fall victim to this heinous financial crime.
My family came to the realization very quickly that the money stolen from them, along with the remaining 54 victims, totaling $9.3 million dollars would never be recouped. The stress, anguish, and despair that it has caused in the lives of the victims and their families are immeasurable.
I am a firm believer that actions speak louder than words and the actions of Erker, Krantz, and Brunst speaks volumes. I want our justice system to do what it’s meant to do and right the wrongs of these three heartless, narcissistic individuals who knew exactly what they were doing unapologetically. If they claim remorse now, it will be because they have finally been caught. Trust is earned in drops and lost in buckets; this is a nightmarish flood!"