Kansas Man Sentenced To Federal Prison For $6.8M Securities Fraud Scheme – InsuranceNewsNet
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AUSTIN, Texas, June 4 – U.S. Attorney for the Western District of Texas Ashley Hoff issued the following news release on June 3, 2021:
A federal judge today sentenced 45-year-old Christopher Matthew Meredith of Shawnee, Kansas, to 14 years federal prison for his plan to defraud investors of more than $ 6.8 million.
In addition to serving his sentence, US District Judge Robert Pitman ordered Meredith to pay US $ 6,820,510.50 in compensation and to be released under custody for a period of three years upon completion of his sentence. After today’s hearing, Judge Pitman referred Meredith to the US Marshals Service to serve his sentence.
“This scammer targeted dozens of retirees and other investors who lived in the Brenham area, as well as other parts of Texas and the country. He made millions of dollars through obvious lies and then used their money to fund his lifestyle,” said US Attorney Ashley Hoff. “I commend the prosecutors and our partners in the FBI and the Texas State Securities Board for bringing Meredith to justice and providing some degree of closure to his victims.”
On January 8, 2020, Meredith pleaded guilty to securities fraud. According to court documents, Meredith used false pretexts to attract investors to his company Strategic Pharma, Inc. (SPI) from January 2015 to March 2017. Meredith told investors that SPI had agreements, business, money and assets knowing it was wrong. For example, Meredith deliberately disclosed to investors that SPI had agreements with the Department of Veterans Affairs (VA) and Biopharma Services, Inc. that would generate significant revenues for SPI. Meredith drew up a fake VA contract and showed it to investors to back up his lie. Meredith also failed to disclose to investors that he was being investigated for a similar investment fraud in Florida in which he ultimately pleaded guilty of serious theft. Meredith convinced investors to give him cash in exchange for SPI shares. He then uses investor money for his personal benefit, including buying a home, and for the benefit of his relatives and employees.
“As a result of the tireless investigative efforts of the San Antonio FBI, the Austin White Collar Task Force and the Texas State Securities Board, Meredith will no longer cheat members of our community out of their hard-earned dollars,” said Christopher Combs, Special Agent of the San Antonio Division of the FBI. “In this case, over 100 investors have been identified as victims, many of whom have lost their retirement savings. We hope they find comfort to see Meredith brought to justice and held accountable for his pattern of willful fraud.”
“The State Securities Board welcomes today’s conviction. The severity of financial crime and its impact on our investors has been demonstrated by the imposition of a fourteen-year prison sentence on Mr. Meredith, “said Travis J. Iles, commissioner for the Texas State Securities Board. “Texas investors saw justice today. The good work of the Western District Attorney’s Office, the FBI, and our investigator made this possible.”
US assistant attorneys Alan M. Buie, Daniel Castillo and Robert Almonte are prosecuting this case.
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