Central Indiana Man, George S. Blankenbaker Faces Federal Fraud Charges
Investors lost over $1,500,000, Securities and Exchange Commission involved
Indianapolis (STL.News) Acting U.S. Attorney John E. Childress announced today that George S. Blankenbaker Jr., 56, of Westfield, Indiana, was charged in federal court for two counts of wire fraud and one count of money laundering.
According to the information, between May 2008 and August 2016, Blankenbaker created three business entities, Stargrower Commercial Bridge Loan Fund 1 LLC and Stargrower Asset Management, LLC (hereinafter the Stargrower Entities) and EDU Holding Trust (the Trust). He later used these entities, which he owned and managed, in the execution of a Ponzi and money laundering scheme.
“The victims of this scheme placed enormous trust in Mr. Blankenbaker to wisely manage and invest their hard-earned money,” said Childress. “Instead, he exploited their trust through deception and lies for his own personal gain.”
Blankenbaker persuaded more than 100 individuals to invest more than ten million dollars in the Stargrower Entities. He represented to investors that the funds they invested would be used to finance the use of shipping containers of food in the “international trade of fast moving consumer products similar to what you would find in a grocery store.” The investment funds received by Blankenbaker were deposited into Stargrower Entities bank accounts which he solely controlled and was the sole signatory.