Phony Fitness Magazine CEO Indicted For Fraud
Posted on Thursday, 5 of November , 2009 at 5:24 pm
NEW YORK—A man who allegedly defrauded more than 50 individuals in at least six states including Virginia, Maryland, Massachusetts, California, Nevada, and Georgia by falsely holding himself out as the CEO of an online fitness magazine and soliciting investments in his fictitious company has been indicted.
Mark Andrew Moore, 40, of Amsterdam Ave., New York, has been charged with grand larceny, securities fraud, scheme to defraud, and tax fraud. The crimes charged in the indictment occurred between March 2007 and April 2009.
The investigation leading to Thursday’s indictment and arrest revealed that Moore claimed to be the chairman, president, and CEO of eS-prit International, Inc., a “social networking” Internet-based company.
Moore represented to his investors that users of the company’s Web site could communicate with experts in the fields of health, fitness, and wellness. Moore received money from more than 50 victims, most of whom Moore met at an investment club that convened in the Washington, D.C. area.
Manhattan district attorney Robert Morgenthau said Moore falsely told his victims, who were largely unsophisticated investors, that their stock purchases were at prices “below the official price.” In reality, the stock was not publicly traded at all.
In exchange for their investments, Moore allegedly sent the victims bogus stock certificates, indicating that they owned shares of stock in eS-prit International, Inc.
Moregenthau said the investigation further revealed that eS-prit International, Inc. existed in form only. The address listed as the administrative headquarters of the company was in reality a post office box Moore rented. Individuals listed as serving on the Board of Directors of eS-prit International, Inc. did not know they were on the board and had never even heard of the company. The Web site that Moore trumpeted, http://es-prit.com, was a mere skeleton of a Web site, without any of the links activated, including those to the “experts”, Morgenthau said.
Moore used the lion’s share of the $365,000 he received from the investors to pay his personal expenses. The investigation revealed that he spent over $100,000 on restaurant meals and bar tabs; clothing and accessories, including one Louis Vuitton bag that Moore purchased for over $3,500; travel and entertainment; and his family’s cell phones and cell phone bills, cable television service, and gym memberships.
Moore also allegedly took more than $200,000 in cash. The New York State Department of Taxation and Finance has determined that Moore did not pay taxes on any of the money that he stole, used, and spent, Morgenthau said.
Moore has a previous felony conviction for grand larceny for stealing more than $38,000 from Hunter College, his former employer, in 2000. Moore allegedly used almost $15,000 of the money he stole from his investors in his current scam to pay the restitution he owed in that case.
The Securities and Exchange Commission referred the case to the District Attorney’s Office, and the agencies worked jointly on the investigation. 11-5-09
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Category: Business, Consumers, Courts, Crime, Health, Internet, Media, New York State
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