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Former CEO Sentenced to Prison for Wire Fraud
NEW YORK, NY – Spiro Baltatzidis, the former Founder and Chief Executive Officer of Starwich, Inc., was sentenced to six months in prison for wire fraud in Manhattan federal court. Baltatzidis pleaded guilty in January 2013 to the charges.
According to the charges, Baltatzidis solicited a $25 million investment from a financial institution in 2007, claiming the funds would be used to expand the business operations of Starwich. However, the bank statements provided to the investor were fraudulent, and the actual bank account records showed a balance of approximately $400 as of December 31, 2006, and approximately $200 as of June 30, 2007.
Prosecutors alleged that Baltatzidis altered an email chain with a Citibank employee to make it appear as though the account balance was over $1 million. The investor entered into a Memorandum of Terms with Starwich in November 2007, detailing the principal terms of a proposed $25 million investment. However, the investment never materialized.
United States Attorney Preet Bharara announced the sentencing, stating that Baltatzidis’s actions were a clear example of corporate greed and deception. Judge Ronnie Abrams imposed the six-month sentence, which will be served in federal prison.
Baltatzidis’s scheme was uncovered during an investigation into the financial dealings of Starwich, Inc. The case highlights the importance of due diligence and the need for corporate leaders to be truthful in their dealings with investors.
The sentencing of Baltatzidis sends a strong message that corporate crime will not be tolerated in New York and serves as a reminder to business leaders to act with integrity and transparency.
Key Facts
- State: New York
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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