A federal jury has found Kay F. Gow (68, Naples), Robert T. Gow (77, Naples), and John G. Williams, Jr. (67, Virginia Beach, VA) guilty of conspiracy to commit wire fraud and wire fraud.
The Gows were also found guilty of conspiracy to commit money laundering and illegal monetary transactions.
Each defendant faces a maximum penalty of 5 years in federal prison for the conspiracy to commit wire fraud count and up to 20 years’ imprisonment for each wire fraud count (Gows: 4 counts each, Williams: 2 counts).
The Gows each also face up to 10 years in federal prison for conspiracy to commit money laundering and for each count (4) of illegal monetary transactions.
And the defendants face the forfeiture of more than $5.1 million in proceeds traceable to the offenses.
All three are scheduled to be sentenced on May 20, 2019.
According to the evidence presented at trial, the Gows owned and controlled multiple entities, including HerbalScience Group, LLC, and HerbalScience Singapore Pte, Ltd.
In 2010, the Gows formed VR Laboratories, LLC, in order to apply for a $5 million grant from Lee County through the Financial Incentives for Recruiting Strategic Targets (“FIRST”) program.
The FIRST program consisted of taxpayer funds set aside by the county to bring economic development projects to the Ft. Myers area.
In seeking the FIRST grant, the Gows made numerous false and fraudulent representations to various individuals and government entities about their financial success and that of HerbalScience and VR Labs, including that VR Labs was poised to become a leading global formulator and manufacturer of botanical pharmaceuticals.
Ultimately, Lee County awarded VR Labs $5 million in FIRST grant funds to build a manufacturing facility that the Gows had claimed would bring hundreds of high-paying jobs and economic growth to Lee County.
Key Facts
- State: Florida
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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