Kelly Gearheart, Accused of Operating Ponzi Scheme, Pleads Not Guilty in Federal Court
Kelly Gearheart, the former President of Hurst Financial, entered a not guilty plea in Federal Court on Wednesday to 16 charges for running an alleged ponzi scheme. Gearheart is accused of taking money and property from people who thought they were making secure investments and defrauding more than 1200 investors out of more that $100 million dollars. If convicted of all of the charges, Gearheart faces 300 years in Federal Prison. A trial date was set for October 9th, however the parties involved have agreed to continue the trial to January 29th of next year. James Miller, who was an associate of Gearheart, pleaded guilty to charges of fraud and money laundering as part of a plea agreement and is expected to be sentenced October 29th in Federal Court.