Related Federal Cases
- Michael Esposito Charged in $1M Wire Fraud Scheme · Pennsylvania
- Jeffrey Phares, Cemetery Fraud, West Virginia, 2023 · New Jersey
- Irina Segal, Medicare Fraud, Bucks County PA, 2023 · New Jersey
- Irina Segal, Medicare Fraud, Philadelphia PA, 2023 · New Jersey
- Irina Segal, Medicare Fraud, Philadelphia PA, 2023 · Alabama
CEO Sentenced for $1.35M in Wire Fraud
Camden, NJ – Karl James, 50, the CEO of Gore Capital LLC, has been sentenced to 30 months in prison for defrauding an investor of $1.35 million, Acting U.S. Attorney Rachael A. Honig announced.
James pleaded guilty to one count of wire fraud before U.S. District Judge Joseph H. Rodriguez, who imposed the sentence in Camden federal court. In addition to the prison term, Judge Rodriguez sentenced James to three years of supervised release and ordered him to pay $1.35 million in restitution.
According to court documents, James falsely told the victim that he would deposit his own money into a bank account, but instead, he spent $1.35 million of the victim’s funds on personal and entertainment expenses.
The victim initially invested $500,000 in April 2016, followed by an additional $1 million in July 2016. James had promised to form a Limited Liability Company (LLC) as a conduit for their joint investment but failed to do so.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Matthew Feldman Nikic of the Cybercrime Unit in Newark.
In a statement, Honig emphasized the importance of holding individuals accountable for their actions and ensuring that justice is served. This case serves as a reminder to investors to be cautious and do their due diligence before investing in any venture.
Key Facts
- State: New Jersey
- Category: White Collar Crime|Fraud & Financial Crimes|Cybercrime
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
