Man pleads guilty to defrauding Chill Can investors
A Huron man has pled guilty to defrauding investors in the failed Chill Can plant project in Youngstown.
According to a press release from the Ohio Department of Commerce, Garry Savage of Huron, Ohio pled guilty to 23 criminal counts both individually and on behalf of his company Coast to Coast Chill Inc., a company based out of Nevada.
These charges included seven counts of securities fraud, eight counts of sales of unregistered securities, six counts of fraudulent or deceptive conduct by an investment adviser representative and two counts of theft.
Savage was involved in an investment scheme where he diverted investor funds to pay himself and repay other investors, as well as to omit material facts from investors.
Savage sold investments to 18 Ohio investors in Coast to Coast Chill. These funds were supposed to be invested into the Joseph Company International for a project to build a facility in Youngstown.
That project promised to create 250 new jobs for the city and have the plant fully operational by 2018. That never happened leading to a legal battle with the city.
"Securities laws exist to protect investors from the serious harm caused by fraud and deceit. Fraudulent schemes such as this will never be tolerated. The Ohio Division of Securities will continue to work diligently to ensure victims have the opportunity to seek justice and restitution," said Ohio Security Commissioner Andrea Seidt.
Savage remains in the Erie County Jail while awaiting sentencing, which is scheduled for December 30.