CANTON, OH (WOIO) - A North Canton man is accused of selling $162,000 in unregistered securities to approximately 15 investors, primarily from Stark County. At least nine of the investors were elderly.
The investors believed they were investing in a Stark County limited partnership titled MA & P Partnership, which William Morgan organized and managed. The investors were told that the partnership invested in various platforms, including oil futures and companies listed on the stock exchange.
Morgan was indicted on 44 counts by a Stark County grand jury on Dec. 19, 2012. He was arrested and booked into the Stark County Jail Friday. Morgan's arraignment hearing is scheduled for Dec. 28.
Morgan was indicted on the following charges:
• 6 counts of grand theft
• 9 counts of theft from the elderly
• 14 counts of selling unregistered securities
• 15 counts of securities fraud
The Division of Securities investigation led to a cease and desist order against Morgan in May 2012. The Division found that Morgan sold unregistered securities, failed to properly account for investor money, and made fraudulent statements to investors.
Investors were told by Morgan that their investment was safe and secure and there was no way they could lose their investment. Instead of directly investing their funds, Morgan placed their money in his bank account.
Prior to these alleged law violations, Morgan was licensed as a securities salesperson until he was terminated in January 2004 by his employer for failing to fully cooperate in an investigation by the National Association of Securities Dealers. He also had been a licensed insurance agent, but his license was revoked by the Ohio Department of Insurance in December 2011.
The Stark County Prosecutor's Office is prosecuting the case.