Marblehead man sentenced for securities fraud and identity theft at Beverly company
BOSTON— According to a press release from the FBI’s Boston Office and the Boston U.S. District Attorney’s Office, a Marblehead man has been sentenced for conspiring to commit securities fraud, defraud company auditors, make false statements in filings with the U.S. Securities & Exchange Commission (SEC), and commit aggravated identity theft.
Jon R. Latorella, 48, had pleaded guilty on March 5, was sentenced by U.S. District Judge Douglas P. Woodlock on June 15 to five years in prison followed by three years of supervised release. Latorella must also make restitution payments to his victims.
According to the release, Latorella is the former president and CEO of Locateplus Holdings Corporation, and conspire with another man who worked at Locateplus in pursuing several fraudulent schemes to artificially inflate the company’s assets and revenues. The schemes included:
Fabricating a loan transaction with a fake company called Andover Secure Resources, which included using the identity of a man who died in 1985 as the head of Andover, and manipulating funds to create the appearance that Andover was paying down a fictitious debt to Locateplus;
Falsifying revenue streams to make it appear that another entity, Omni Data Services, was paying Locateplus under the terms of a contract, when in fact Omni Data had no independent existence and the contract was fake;
Deceiving the SEC and other regulatory authorities to avoid registering securities being sold by a company called Paradigm Tactical Products, including using the identities of Latorella’s acquaintances, girlfriends, and two dead men as Paradigm investors;
Routinely deceiving company auditors and the SEC about the nature of Locateplus’ revenues and assets in order to keep these fraudulent schemes going and to attract investment in Locateplus.