Gregory P. Loles, an unregistered investment advisor in Westport, Conn., has been barred by the SEC from doing business as an investment advisor due to his role in a multi-million dollar fraud scheme that involved the St. Barnabas Greek Orthodox Church in Orange, Conn., and individuals in the church.
The SEC on Sept. 6 banned Loles from any association with the financial industry. He had been operating Apeiron Capital Management Inc. until pleading guilty in July to mail fraud, wire fraud, securities fraud and money laundering. He is in FBI custody awaiting sentencing.
Loles defrauded church members, the church and customers of his Porsche dealership of $8.7 million, according to the U.S. Attorney General for the District of Connecticut. He used the money for personal expenses, to support the Porsche dealership, to pay off credit card debt, and to make "lulling" payments to some investors, the attorney general said.
Loles was on the endowment fund and the building fund board of the church, and was entrusted with their investments.
He also was involved in professional race car teams through various Farnbacher Loles businesses in Danbury, which also was a service center for high performance automobiles, including Porsches.
Some of the people he defrauded invested their retirement savings with Loles, according to the U.S. Attorney.