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Ex-Harnett teacher pleads guilty to stock-trading scheme

Posted July 26, 2010

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— A former Harnett County teacher has pleaded guilty to mail fraud in a scheme to lure investors into fraudulent day-trading of stocks, authorities said Monday.

Ronnie D. Rainey, 43, who now lives in Oklahoma, pleaded guilty on July 20 in federal court in Raleigh. He will be sentenced in November.

Authorities said Rainey solicited people to invest their money with him from 2003 until 2005 through four companies that he created: Par 5 Investors LLC, Birdie Investors LLC, Eagle Investors LLC and Double Eagle Investors LLC. He was never registered to sell securities in North Carolina.

Rainey created multiple accounts with E*Trade and Ameritrade and drew in investors with claims that they would get monthly returns of 10 percent, authorities said. He is accused of defrauding 60 investors, including 12 from North Carolina, of nearly $3 million.

When Rainey’s investments began losing money, he manufactured false monthly and quarterly statements for investors, indicating their investments were turning a profit, authorities said. Investigators allege Rainey shuffled funds between accounts and converted much of investors’ money to his personal use.

He moved from Harnett County to Las Vegas in late 2003 and then to Oklahoma in 2007.

The case was investigated by the Securities Division of the North Carolina Secretary of State's Office.


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  • mghood Jul 28, 2010

    Sad. Hope the investors can recover some of their investment. Remember: "If it sounds too good to be true, it probably is."

  • juchushu Jul 27, 2010

    He was my teacher in 2000. I held him in such high regard then, and up until now. I'm so disappointed.

  • Sidekick Jul 27, 2010

    Former high school student, Matthew Burns, wrote this article. That is about as meaningful and ex-teacher.

  • thepeopleschamp Jul 26, 2010

    So he was last a teacher in Harnett in 2003 but he is referred to as "Ex-Harnett teacher". This is the type of stuff that happens, mostly to teachers and law enforcement, in that the media contributes to those professions having a bad name. This guy is in no way associated with Harnett Co. schools yet his actions 7 years later reflect that? I guess the story wouldn't be as scandalous if it just read "Fraudulent Investor Pleads Guilty".

  • ncouterbanks69 Jul 26, 2010

    "the state takes advantage of the same people in the form of the lottery" - colliedave

    WHAT? So it's the states fault that someones milk money went to a scratch ticket? I think not. If you use your rent to buy lottery tickets you have issues that go well beyond the lottery. That is something that actually benefits the state.

  • obs Jul 26, 2010

    ya think he might golf a little?

  • colliedave Jul 26, 2010

    When will people ever learn?? Fast money does not exist. It takes wings and flies away. kadee123

    the state takes advantage of the same people in the form of the lottery

  • nonemeant Jul 26, 2010

    When will people ever learn?? Fast money does not exist. It takes wings and flies away.

  • grimreaper Jul 26, 2010

    Wow are people stupid.

  • the people Jul 26, 2010

    Another lost GENIUS !!!!!! what he could of been ,but he chose criME!!!!!