Springfieldian sentenced to 8 years for securities fraud

Missouri Secretary of State Matt Blunt announced Jan. 30 that Larry K. Gaither was sentenced to eight years in prison for the crimes of securities fraud and selling unregistered securities. Gaither, who currently resides in Springfield, was indicted by a Greene County grand jury on Dec. 6, 2001. He then entered a plea of guilty on Aug. 12, 2003.

Investigators with Blunt's office, who assisted in the prosecution by Greene County Prosecutor Darrell Moore, reported that Gaither, as part of his fraudulent schemes, collected more than $1.1 million from investors in southwest Missouri from July 1998 through the discovery of the fraud in May 2001. Some of the funds were used in what had become a Ponzi scheme, robbing Peter to pay Paul.

Investigators report that Gaither returned approximately $310,000 to investors in the form of interest payments and the repayment of principal.

Of that which was not paid back, Blunt's office reports that Gaither used no less than $381,000, or at least one-fourth of the total obtained from investors, for his own personal use and for the use of his family.

The prison sentence obtained by attorneys in Blunt's office, acting as special assistant county prosecutors, is part of Blunt's crackdown on investment fraud.

"Crimes by businessmen preying on Missouri investors offends me personally," Blunt said in a news release. "This case should make it clear to Missouri citizens that illegal securities sales will be criminally prosecuted. These frauds by Larry Gaither, victimizing investors who trusted him, justify the judge's decision today. I am pleased with the sentence."