Thaindian News

MIAMI, FLORIDA (BNO NEWS) – Nine defendants were sentenced in connection with a scheme that defrauded more than 669 investors throughout the United States for the amount of $19.6 million, prosecutors announced on Tuesday.

Jimmy L. Barker, Jr., Robert Ladrach, Marc Rifkin, Theodore Ginocchio, Ronald Bowsky, Jack Maddock, Robert Pozsony, Rodger Brownson, and Michael Weidgans were part of 3001 AD, LLC and its affiliates. They operated as a virtual reality video gaming company that developed, marketed and sold high-tech video game products from 1998 to 2008.

Originally, 3001 AD operated “Beta Zones”, which were video game centers located in theme parks. In 2004, 3001 AD stated promoting the Trimersion First Shooter Video Game Accessory as a gadget that will allow users to immerse themselves in video games played in common.

3001 AD raised approximately $19.6 million from different investors. The defendants gave false information to the investors in order to make them believe that they would obtain three times or more of what they initially invested . Instead of using the investor’s money to the development of the accessories, the defendants used it for personal expenses and undisclosed sales.

The sentences imposed on the Southern District of Florida ranged from 152 months to 30 months imprisonment.

“The United States Attorney’s Office continues to aggressively prosecute those who participate in investment frauds in the Southern District of Florida. As this case shows, we will investigate and prosecute participants at all levels of these illegal operations, from the fraudulent sales agents to the organizers who mastermind and direct the fraud,” a U.S. attorney said.