DAYTON, Ohio (CN) – Roy Dillabaugh and his company, The Dillabaugh Group, duped nearly 150 investors out of $12.4 million through a Ponzi scheme that he operated until his death in 2007, the director of the Ohio Department of Commerce claims in Montgomery County Court.
Dillabaugh used investors’ money on personal expenses and “dozens” of life insurance policies, the lawsuit claims. He allegedly wrote his secretary, Johanna Long, a letter instructing her to cash out one of these policies to pay rent for company offices after he died. But Long never paid any of the investors, the plaintiffs claim.
Investors demand an injunction preventing Dillabaugh’s estate from selling any more insurance policies or other property paid for with investment money. They are represented by Nancy Rogers in Columbus.