Office of the Attorney General
Attorney General Greg Stumbo Announces Indictment of Three People by Bath County Grand Jury in Alleged Ponzi Scheme

Press Release Date:  Thursday, November 16, 2006  
Contact Information:  Vicki Glass, 502-696-5643 Office  

Attorney General Greg Stumbo announced today that his Special Prosecutions Division has obtained multi-count indictments against three individuals in a fraudulent business opportunity scheme that resulted in losses of approximately $70,000 to Kentucky residents and more than $4,000,000 nationally.

The Defendants are Edward “Eddie” Fields, James L. Sloan, and Michael Foster. A Bath County grand jury indicted Fields, a former Bath County resident, on 12 felony counts of state securities violations and six felony counts of Receiving Stolen Property. Sloan, of Indiana, was indicted on six felony counts of state securities violations. Foster, of Virginia, was indicted on three.

The indictments are part of an ongoing investigation by the Office of Attorney General’s Consumer Protection Division and the Kentucky Office of Financial Institutions in which persons were told they were investing in Health and Wealth Co-Op. They were promised as much as 6% per month on the investment. The investigation revealed that this "Ponzi" scheme operated by paying earnings on investments with other investors' funds. It is alleged that the defendants received substantial funds as a result of this illegal scheme, all of which came from the victims. Deposits to bank accounts controlled by Fields were traced to individuals from 25 states.

“This is a perfect example of the old saying, ‘if it sounds too good to be true, it probably is,’” said Attorney General Stumbo. “My office receives many complaints regarding fraudulent business and investment schemes and Kentuckians should be wary of persons or businesses that offer unrealistic financial returns. Before Kentuckians invest their hard earned dollars, they should check with their local Better Business Bureau, the Office of Financial Institutions or my office to find out if complaints have been filed against these types of financial opportunities.”

Stumbo said his office’s investigation of other individuals associated with Health and Wealth is ongoing and could produce additional criminal charges. Individuals with information regarding this alleged scam can contact the Attorney General’s Consumer Protection Division toll free at 888-432-9257.

Eddie Fields
Eddie Fields