NEW YORK (AP) — The chief executive of U.S. Technologies was charged Monday with misusing $15 million entrusted to him by investors, including funneling some of the money into a trust fund for his children.
A federal grand jury handed up a 22-count indictment charging C. Gregory Earls, 58, with multiple counts of securities, mail and wire fraud.
The indictment says Earls controlled an investment company called USV Partners and claimed he would use investors’ money to buy shares of U.S. Technologies. Instead, he allegedly used it for the trust fund and to repay investors from other business ventures.
It also says Earls stole $1.3 million from investors, claiming he would finance an Internet company but pocketing the money for himself.
The new indictment encompasses allegations first made by federal prosecutors in December, but adds new charges related to the alleged Internet scheme.
“Innocent investors entrusted tens of thousands of dollars to Earls,” U.S. Attorney James Comey said of the scandal. “The indictment alleges Earls repaid that trust with a naked theft of investors’ money.”