Neurendo Pharma CEO Charged with Stealing $1.5M

Neurendo Pharma CEO Charged with Stealing $1.5M

The CEO of Wisconsin pharmaceutical company Neurendo Pharma LLC has been arrested and arraigned in Illinois federal court on one count of wire fraud. Neurendo Pharma CEO, Robert Tomlinson, allegedly stole at least $1.5 million dollars of investor money to pay personal bills and support his family’s lavish lifestyle.

 Neurendo Pharma CEO Stole Investor Money Under False Pretense

The complaint alleges that between March 2016 and November 2017, Tomlinson scammed money from investors through false representations about an experimental Type 2 diabetes medication known as GNTI, produced by his company Neurendo Pharma.

The complaint alleges that Tomlinson lied to investors, telling them their money would be used for Neurendo’s operational expenses, as well as marketing costs for the experimental drug. He told investors they’d see a profit only upon purchase of the company’s drug rights.

Instead of using the money for Neurendo, Tomlinson allegedly transferred investor funds to obscure bank accounts from which he would write his wife checks to personal bills. It’s alleged that Tomlinson strategically withdrew money from Neurendo accounts in increments that fell just under federal reporting requirements. Nearly all the money was used for personal purposes, including a $20,000 in annual golf and yacht club membership and mortgage payments on his Michigan lake house.

Tomlinson allegedly claimed that he was not paid a salary, blaming Neurendo’s high operating costs. He requested an additional $300,000 investment from an unnamed investor to cover additional expenses. That money also was used for personal expenses.

Tomlinson to Surrender Passport

Tomlinson surrendered his passport as part of his pretrial bond-release conditions, which also require him to appear in court when necessary, to remain within the federal court district, and to avoid contact with his Neurendo Pharma LLC investors.

If convicted, Tomlinson faces a maximum 20-year prison sentence, three years of supervised release, and a $250,000 statutory fine or twice the gross gain or loss that resulted from his alleged scheme—whichever is greater.

Have You Lost Money in an Investment Scheme?

If you believe you have been the victim of an investment scheme, you may have certain legal rights that require your immediate attention.

Call an Investment Fraud Attorney Today

If you are looking for an investment fraud attorney to review your rights and options, the investment fraud lawyers at Dimond Kaplan & Rothstein, P.A. have recovered more than $100 million from banks and brokerage firms for their wrongful actions.

With offices in Los AngelesNew YorkWest Palm Beach and Miami, our investment fraud attorneys represent clients nationwide and may be able to help you recover your investment losses.

Contact an investment fraud attorney at Dimond Kaplan & Rothstein, P.A. today to schedule an appointment or consultation to review your rights and option

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SEC Gets $18M Judgment Malom Group Scam

SEC Gets $18M Judgment in Malom Group Scam

Two Swiss residents have been held liable by a Las Vegas federal judge for an $18 million investment scheme dubbed Malom – an acronym for “Make a Lot of Money”. In December 2013 the U.S. Securities and Exchange Commission (SEC) filed a complaint against Martin Schlaepfer and Hans-Jurg Lips, the principals of the investment scheme, alongside four others, for duping more than 30 investors into investing $11 million into Malom Group AG, a “sham company” in Switzerland.

Malom Group Scam Generates Criminal Case

Criminal prosecutors similarly charged the six defendants in the Malom Group scam in December 2013 with fraud and conspiracy, saying they promised high rates of return using fake documents showing sizable deposit balances at prominent European banks.

Judgements Include Pay Back of Hefty Sums

The U.S. District judge entered judgments against Schlaepfer and Lips, making them jointly liable for $10.6 million of disgorgement, $2.1 million of interest, and a $5.5 million civil penalty.

Micelli, a disbarred lawyer, is currently serving a five-year sentence after he pled guilty to conspiracy to commit wire fraud and securities fraud. Finn is awaiting transfer to the United States from Canada, according to a Nevada Justice Department spokesman.

The judge also entered judgments against two other scheme participants, James C. Warras and Anthony B. Brandel, finding their December 2015 conviction by a criminal jury entitled the SEC to a final judgment. The criminal case resulted in the sentencing of Warras and Brandel to 87 months each in August 2016.

Have You Been a Victim of an Investment Scheme?

If you believe you have been the victim of an investment scheme, you may have certain legal rights that require your immediate attention.

Call an Investment Fraud Attorney Today

If you are looking for an investment fraud attorney to review your rights and options, the investment fraud lawyers at Dimond Kaplan & Rothstein, P.A. have recovered more than $100 million from banks and brokerage firms for their wrongful actions.

With offices in Los AngelesNew YorkWest Palm Beach and Miami, our investment fraud attorneys represent clients nationwide and may be able to help you recover your investment losses.

Contact an investment fraud attorney at Dimond Kaplan & Rothstein, P.A. today to schedule an appointment or consultation to review your rights and options.

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California Man Sentenced to 40 Years in Oil and Gas Investment Scheme

John Westine Jr. was convicted of orchestrating a fraudulent oil and gas investment scheme that took in more than $3 million across the nation from 240 investors. Westine was convicted of securities fraud, mail fraud, and conspiracy to launder funds. The Kentucky-based scam was supposed to be an investment in oil-producing wells throughout the state.

Kentucky’s Department of Financial Institutions (DFI) began receiving complaints in late 2012, at which time DFI began its investigation in conjunction with the U.S. Postal Service and the U.S. Attorney for the Eastern District of Kentucky.

Evidence presented at trial showed that Westine and his co-defendants raised money by misrepresenting and failing to disclose material facts about certain oil well investments; namely, representing that oil was being produced when it was not. Investors also were led to believe that the companies had been in the oil production business for decades.

Westine also failed to disclose that he previously served more than 20 years in prison for running a similar scheme in Ohio. In fact, he was on probation from his previous crime at the time he began orchestrating this scheme.

Westine’s co-defendant, Henry Ramer, was sentenced to 13 years on the same charges. He worked as a salesman and manager of two Los Angeles-based telemarketing sales operations. Westine’s half brother, Michael Hicks, was sentenced to three years for mail fraud. He opened bank accounts and deposited investor checks, then sent the money to his co-defendants in California.

Were you a Victim of an Investment Scheme?

Westine is not the first person to perpetrate such a investment scheme and will not be the last. If you were a victim of Westine’s scheme or a similar one, you may have certain legal rights that require your immediate attention. Contact an experienced Los Angeles securities fraud attorney as soon as possible to discuss your rights.

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