COLUMBUS, Ohio – A former OSU football player, his wife and his business partner are accused of bilking their company’s investors out of millions of dollars and diverting the money for personal use.
A federal grand jury has indicted Preston Harrison, of Lewis Center, and Thomas Jackson, of Powell, on counts that include wire fraud and money laundering. Harrison’s wife Lovena also faces federal charges, according to the indictment announced by U.S. Attorney Carter Stewart Tuesday.
Jackson’s attorney says he plans to plead not guilty. Messages were left with the Harrisons’ attorneys after hours.
Federal authorities say the men engaged in a scheme to deceive investors in Imperial Integrated Health Research and Development LLC, their Westerville company, which developed the sports drink OXYwater. They allegedly used the money to buy jewelry, cars, weapons, clothing and a swimming pool.
Authorities claim as a result of the defendants’ alleged conduct between August 2010 and spring 2013, investors lost approximately $9 million.
Preston Harrison played for Ohio State in the early 90’s.
The indictment alleges the Harrisons and Jackson sent false statements about the company to investors intended to make the company appear to be “lucrative and profitable” in hopes of drumming up additional investments.
Authorities say Preston and Lovena Harrisn put $1.1 million in an account in the name of Lovena’s daycare business and used the money for personal expenses without reporting it as income on their 2011 income tax return.
Using this scheme, Jackson and Preston Harrison allegedly defrauded investors out of $2 million and, when the company declared bankruptcy with no assets, the investors lost approximately $9 million, according to court documents.
The 34-count indictment charges the Harrisons with conspiracy to obstruct the Internal Revenue Service and with filing a false tax return. Each count is punishable by up to five years in prison.
Preston Harrison and Jackson also face one count of conspiracy to commit wire fraud and nine counts of wire fraud, each punishable by up to 20 years in prison, one count of conspiracy to commit money laundering and 20 counts of money laundering, each punishable by up to ten years in prison.
Lovena Harrison is charged with one count of structuring financial transactions to evade reporting requirements, also punishable by up to five years in prison.
The indictment demands that Preston Harrison and Jackson to forfeit more than $1.1 million, including two vehicles, eight weapons, cash and the contents of a bank account.