BUCYRUS – Barbara E. Armstrong, 76, of Morral, Ohio has been sentenced to six months in jail for her involvement in a securities fraud scheme that she carried out with her late husband, according to the Ohio Department of Commerce Division of Securities.
Armstrong was sentenced by the Crawford County Court of Common Pleas on Wednesday and will serve her term in the Crawford County jail.
She also must pay nearly $600,000 to victims that she defrauded, the ODC stated in a press release.
Armstrong, and her husband, Thomas J. Armstrong, were indicted in September 2024 by a Crawford County Grand Jury on 19 criminal counts, including Securities Fraud, Sale of an Unregistered Security, Theft from the Elderly, and Telecommunications Fraud.
The indictment followed an investigation and referral from the Ohio Division of Securities. Thomas J. Armstrong passed away in April 2025.
The indictment alleged that from at least May 2017 through July 2021, the Armstrongs, acting in concert with one another, solicited at least five Crawford County residents and two Florida residents to invest over $750,000 in promissory notes issued by their company, 5 Star Development of Ohio, LLC, for the purchase, renovation, and/or resale of residential homes.
The indictment also alleged the promissory notes were not properly registered with the Division for sale in or from Ohio, and that the Armstrongs misappropriated investor funds for their own personal use.
During sentencing, Armstrong was ordered to pay restitution to five investors defrauded in the scheme in the amount of $598,000. She may face additional imprisonment in the event she does not abide by a restitution plan administered by the court.
“Our division remains steadfast in its commitment to protecting Ohioans from fraudulent investment schemes,” said Ohio Securities Commissioner Andrea Seidt. “Today’s sentencing underscores a simple truth: when individuals defraud innocent people out of their hard‑earned money, there will be consequences and accountability.
“We will continue to pursue justice for those harmed by deceitful and unlawful conduct.”
Ohioans with any questions or concerns about investments or financial advisors should contact the Division of Securities at 614-644-7381, securitiesgeneral.questions@com.ohio.gov, or by completing its online contact form here.
About the Division of Securities
The Division of Securities is part of the Ohio Department of Commerce. The department is Ohio’s chief regulatory agency, focused on promoting prosperity and protecting what matters most to Ohioans.
We ensure businesses follow the laws that help them create jobs and keep Ohioans safe.
To learn more about what we do, visit our website at com.ohio.gov.