Westminster man could get 20 years in prison.
A Westminster man entered a plea on Tuesday in US District Court in Baltimore to securities fraud.
The US Attorney's Office for Maryland says John F. "Jef" Curran, III, 42, was founder, president and largest shareholder of a company called Gargoyles, Inc., which was described as a "advanced materials company" that was purportedly doing business with the military and law enforcement. Curran told investors he had customers in a variety of settings, when, in fact, he did not, according to federal officials. They also say Curran misrepresented his education to investors.
He sold $1.9-million worth of stock in the company between January, 2009 to September, 2010, according to a news release from the US Attorney's Office.
Sentencing is expected in August. The US Attorney's Office says Curran could get a maximum of 20 years in prison.
As part of his plea deal, Curran is required to pay restitution up to the amount that he defrauded investors, which is $1.9-million. Defrauded investors will be notifed that they have the option of receiving a refund, and will have 30 days from the receipt of the notice to make a refund request.
In addition, Curran and Gargoyles, Inc., as part of a consent order with the Maryland Attorney General's Office Securities Division, are permanently barred from selling or offering for sale securities in Maryland.
This case was brought under President Obama's Financial Fraud Enforcement Task Force, which was created in November, 2009. and aggressively investigates and prosecutes financial crimes.