Paul C. Carageannis of Wichita, Kansas was sentenced to 60 months of probation and ordered to pay the balance of over $165,000 in misused funds to his victims. Carageannis pleaded no contest on June 15th to one count of felony securities fraud under the Kansas Uniform Securities Act.

Carageannies bilked at minimum eleven Kansas investors out of more than $165,000 from October 2008 to February 2009 by selling unregistered securities in an oil and gas lease. Although Carageannis led his investors to believe otherwise, he had lost the lease and rather used most of the cash to pay off existing debts and for other personal uses.

Almost $82,000 had been recovered for the victims at the time of the sentencing. In addition to imposing an extended term of probation, the court ordered Carageannis to repay his victims the remaining $84,044.32.

“My office is pleased that Mr. Carageannis’s victims will see a return of most of their money,” said Kansas Securities Commissioner Josh Ney. “Protecting Kansas investors and promoting legitimate business endeavors requires holding fraudulent actors accountable for their actions, as has been done in this case. I appreciate the hard work of our dedicated investigation and legal teams as well as the assistance of the Sedgwick County District Attorney’s Office.”

If you or someone you know has lost money as a result of an investment or Ponzi scheme, please contact Richard Frankowski at 888-741-7503 to discuss your potential legal remedies or complete the contact form.