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Biotech Executive Convicted of Defrauding Investors
A Manhattan federal court jury convicted Patrick Muraca, 49, of Pittsfield, Massachusetts, of wire fraud and making false statements to federal law enforcement. Muraca, the former President of Nuclea Biotechnologies, Inc., was found guilty on both counts of the Superseding Indictment following a trial before United States District Judge Ronnie Abrams.
According to the allegations, Muraca solicited and obtained more than approximately $1 million from investors by making false and misleading representations that the investors’ money would be used to expand the business of NanoMolecularDX LLC and MetaboRx LLC. However, Muraca misappropriated hundreds of thousands of dollars of investors’ funds and used the misappropriated money for personal expenses.
Muraca spent tens of thousands of dollars of investor funds on rent, utilities, and food distributor expenses related to the operation of a restaurant owned by his fiancée. He also wrote more than approximately $175,000 in checks to himself from the bank accounts associated with NanoMolecularDX LLC and MetaboRx LLC. Additionally, Muraca used investor funds to make payments on his mortgage and the mortgage on a home belonging to his mother.
Muraca was arrested by the Federal Bureau of Investigation in July 2017. During a meeting with an FBI Special Agent and an Assistant United States Attorney on November 17, 2017, Muraca made a material false statement about his use of investor funds.
U.S. Attorney Geoffrey S. Berman praised the investigative work of the FBI. ‘Patrick Muraca, who promised investors their money would be used to expand his businesses, instead used those funds for personal expenses,’ Berman stated. ‘Thanks to the investigative work of the FBI, Muraca has been convicted of his fraudulent scheme.’
Muraca faces a maximum term of 20 years in prison for wire fraud and a maximum term of five years in prison for making false statements to federal law enforcement. A sentencing date has not yet been set. The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit.
Key Facts
- State: New York
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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