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Company found sentenced in $1.9M securities fraud

Thursday - 8/15/2013, 6:33am  ET

BALTIMORE (AP) - A man who sold stock in his company although it did not have customers or purchase orders for its products has been sentenced to 37 month in prison.

Forty-four-year-old John F. Curran III of Westminster was also ordered to pay more than $1 million in restitution to victims at sentencing Wednesday in federal court in Baltimore.

According to a statement of facts, Curran was founder, president and the single largest shareholder of Gargoyles Inc., in Westminster. Prosecutors say Curran claimed Gargoyles was an "advanced materials application company." It purportedly did business with customers in the military and law enforcement among other fields.

Curran sold approximately $1.9 million worth of Gargoyles stock to investors, falsely claiming there were customers and purchase orders for its products.

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