YWCA Dayton later vacated the Timbercrest property, which is still owned by the Montgomery County Alcohol, Drug Addiction and Mental Health Services (ADAMHS) board. Although Manning won the auction, the sale of the property is still pending board approval.
The Ohio Department of Commerce Division of Securities in December announced Manning, of Columbus, had been indicted by a Franklin County grand jury on 19 felony charges related to investment fraud. Those charges include unlawful securities practices, grand theft, false representation in the sale of securities, and securities fraud.
“Those allegations are false, and we’re going to just work through them,” Manning told the Dayton Daily News.
The funds in question were a working capital loan rather than securities, like a stock or bond, he said.
“Those were an individual that claimed that a loan was a security, and it’s not true,” Manning said. “All of my other lenders and partners never had that misunderstanding. So that was just a working capital loan.”
Loans are typically negotiated directly between a borrower and a lender, while securities like bonds or stocks are typically traded in a market.
Securities, which are tradable financial assets, can represent ownership or debt in a company or asset. A securities based loan is also a type of secured loan that uses your investments as collateral, according to SmartAsset Advisors, LLC, an investment advisor.
The indictment follows a separate previous indictment in Franklin County on Sept. 10 that included seven additional felony counts of securities fraud, theft, false representation in the sale of securities and other unlawful securities practices. The indictments follow an investigation conducted by the Ohio Division of Securities.
According to the indictments, Manning allegedly solicited at least five central Ohio residents to invest more than $640,000 in promissory notes issued by his company, Blue Logic Capital, for a variety of projects including the purchase, renovation, and resale of a residential home, development of a revolutionary new oil pump, and construction of residential assisted living homes.
The indictments further allege that Manning misappropriated investor funds for his own personal use, as well as to repay other investors. In addition, Manning allegedly omitted material facts from investors and the promissory notes were not properly registered with the Ohio Division of Securities for sale in or from Ohio, according to the Ohio Department of Commerce.
“This case is an unfortunate reminder that there are individuals who will attempt to manipulate and steal from others for their own gain,” said Ohio Securities Commissioner Andrea Seidt. “The Ohio Division of Securities will continue to work tirelessly to protect Ohioans and their investments, and hold accountable those who attempt to defraud others.”
Ohioans should verify the registration of securities with the Ohio Division of Securities before making any investment, Seidt said.
While the indictments include multiple felony charges, Manning said they are all related to the same investors and projects.
“They’re trying to act as though every single transaction that I did then was a separate indictment,” Manning said.
These funds were part of an investment project that started in late 2019, just before the COVID-19 pandemic hit, according to Manning.
“I was working on a number of projects, and then COVID hit, and it shut down everything,” Manning said. “And that affected a lot of businesses, including mine.”
The fallout from the COVID-19 pandemic led to investment losses, he said.
“Some of the investors also lost their money. I lost money, and that is what it is, but they’re trying to claim it was a security, too,” Manning said.
The pandemic resulted in his company losing properties that were part of his company’s projects, he said.
“It wasn’t any misuse or misappropriation or anything like that. We were diligently working through a number of projects, and then COVID hit and shut everything down,” Manning said.
Manning is confident they can develop the former YWCA Huber Heights campus into their vision of residential assisted living facilities, which will have separate single-family residences that can house between six and 12 people in each residence, pending approval of the sale.
“I’ve already got budgets. I’ve already got investors. I’ve got everything lined up,” Manning said. “We just need to be sure that we can get the licensing and the zoning for this.”
Manning’s company plans to renovate the property without demolishing any of the buildings on the 19-acre property. The larger administrative buildings will be part of a wellness center they are envisioning.
The cases against Manning are currently still active in the Franklin County Common Pleas Court. Trial dates are currently scheduled for May. Manning is out of custody on a recognizance bond.
The Montgomery County ADAMHS board will be holding a special meeting to discuss the issue at 5:30 p.m. on April 2 in the ADAMHS Board Room located at 409 E. Monument Ave., Suite 102, in Dayton.
The agenda for this special meeting is to discuss and take action regarding the property located at 7650 Timbercrest Drive in Huber Heights. There will not be an opportunity for additional public comment at this meeting, the board’s meeting notice said.
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