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Filed under: Aftermarket, Motorsports, Government/Legal, Earnings/Financials
One year ago, we reported that Gregory Loles, team principal behind the well-regarded Farnbacher Loles racing outfit and Porsche performance shop, had gotten himself embroiled in an alleged fraud scheme. We hadn't heard much about the scandal since last December, but now the United States Attorney for Connecticut has announced that a federal grand jury has returned a 32-count indictment against Loles. Among the indictments, Loles is being charged with securities fraud, wire fraud, mail fraud and money laundering - to the tune of over $10 million dollars.
According to the official Department of Justice press release, Loles, 51, also owned an investment adviser and brokerage firm called Apeiron Capital Management, Inc., an operation he ran as an unregistered investment adviser after his SEC listing was canceled in 1998. Loles evidently misrepresented his dealings and used monies from his investors (including a Connecticut church's endowment and building funds) to pay personal bills and other unrelated expenses. While he was said to be diverting these funds, he provided false financial statements to his clients, and he made periodic payments to some of them using other investors' money.
The case is being investigated in conjunction with the FBI and SEC, and if convicted, Loles could be going away for a very long time. The mail fraud, wire fraud and four of the money laundering charges alone carry a maximum sentence of 20 years, and other charges carry terms of up to 10 years.
You can read more about the charges leveled against Loles in the official DOJ press release at the link below. Thanks for the tip, Benjamin!
[Sources: New Haven FBI, Newstimes | Image: Image: Chris Graythen/Getty]Followup: Farnbacher Loles team owner charged with $10M fraud originally appeared on Autoblog on Fri, 03 Dec 2010 18:31:00 EST. Please see our terms for use of feeds.
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