Pair Indicted in $1 Million Securities Fraud

Beverly, MAWhile their lawyer argues that charges stemmed from a "flawed investigation," two former executives of a Massachusetts technology company have been indicted on securities fraud involving the alleged falsification of documents in an attempt to inflate a company's revenue in a way that would benefit the accused.

The Boston Globe reported on November 11th that Jon Latorella, the former CEO of LocatePLUS Holdings Corp., and its former chief financial officer, James Fields are accused of stealing the identity of an individual who died in 1985, then using the deceased's identity to create a fictional executive used in the stock-fraud scheme that was intended to create a $1 million windfall for the defendants.

LocatePLUS Holdings is an entity that provides online access to real estate holdings and other public records to facilitate investigative searches.

It is a sad truth that many people with the means to manipulate and direct stocks and securities often bend the rules for personal gain. In this case, Latorella and Fields are accused of creating an individual on paper using the name of a man who drowned in Marblehead Harbor 25 years ago, then using the fictionalized individual to facilitate the fraud.

However the attorney for the accused countered that government charges ignore, or confuse the activities of others who had a hand in guiding certain events, occurring five years ago, that led to the indictment.

The attorney told the Boston Globe that the Justice Department's Office of the Inspector General is investigating whether any relationships between government officials and individuals with ties to LocatePLUS might have tainted the investigation.

The defendants and their legal counsel are confident there was no misconduct.

On top of the indictment, the Massachusetts men face securities fraud charges brought by the US Securities & Exchange Commission (SEC), accusing Latorella and Fields of manipulating the stock of Paradigm Tactical Products, a Massachusetts company that sold handheld metal detectors. In April of this year, the SEC reached a settlement with Paradigm's former president, Daniel O'Riordan, who pleaded guilty to committing securities fraud. O'Riordan is scheduled to be sentenced December 2nd.