A Fairfield, CT consultant pleaded guilty to securities fraud and transacting in criminal proceeds. The man and his partner falsely claimed that their companies held warrants to purchase stock in a California company, eAgency. eAgency is a mobile security products company, located in Newport Beach, CA.
The man had served as eAgency’s president and CEO between 2006 and 2007. He also served as a consultant for the company until 2013.
As part of his plea agreement, the man admitted that he had falsely represented the existence, number, validity and terms of warrants issued by eAgency. He also admitted that he misled investors about his personal investments in and connections to the company. As part of the scheme, he and a business partner sold unregistered securities in the LLCs. Investors purchased shares of four limited liability corporations the man owned, believing the companies held valuable stock warrants. They did not.
In February, a federal judge sentenced his business partner to 78 months in federal prison for his role in the scheme. According to federal investigators, the pair defrauded investors of about $5 million, beginning in 2009.
Following his plea agreement, the judge sentenced the man to 19 months in prison and 36 months of supervised release. He also ordered the man to forfeit more than $5M in proceeds from the scheme. In 2017, the Securities and Exchange Commission barred the man from acting as a broker, dealer, agent or representative. They also barred him from issuing, trading, dealing in, buying or selling penny stocks.
California securities fraud lawyer
When you face securities fraud charges, hire an experienced securities fraud lawyer like Robert Helfend. Mr. Helfend takes securities fraud cases in Ventura County and throughout Southern California. He also takes federal criminal defense cases in any federal circuit in the United States.
Securities fraud laws are complex. An exceptional defense requires the effort of an attorney who will fight aggressively for you. Although securities fraud often involves high dollar amounts, the stakes can be higher for a defendant. Because securities are so tightly regulated, criminal proceedings can result in the loss of your professional credentials and licenses. In addition, you can be required to forfeit earnings, pay fines and restitution if convicted.
Don’t settle for an attorney who won’t fight for your rights. Contact Robert Helfend or call toll-free at (800) 834-6434, (805) 273-5611, (310) 456-3317 or (818) 591-2809 for an immediate consultation on your Ventura County securities fraud case.
Photo Credit: Thomas Hawk, via Flickr.com