Couple charged with criminal securities fraud
Associated Press Posted on Fri, Apr. 18, 2003
COLUMBIA, S.C. -A Midlands high-tech entrepreneur and his wife have been charged with criminal securities fraud.
Tracy and Nancy McGee were arrested Wednesday on felony charges of lying to investors, according to the state attorney general's office.
Tracy McGee, 40, is charged with breach of trust and fraud. If convicted, he could be sentenced to 20 years in prison. Nancy McGee, 39, is charged with breach of trust and could be sentenced to 10 years if convicted.
Wesley Shaw, an employee of the McGees, also was charged with helping mislead more than 60 investors who put more than $1 million into companies controlled by the couple. Shaw, 52, faces a maximum sentence of five years if found guilty.
The McGees started two failed technology firms, MediCompass and Top Box.
Investors put $1.1 million into MediCompass, according to previous findings by the attorney general's office.
The company was supposed to make laptop computers for medical workers, but an investigation by the State Law Enforcement Division found no proof that any products were ever sold.
Top Box was supposed to manufacture flat, plasma television screens installed in sports stadiums. The company never had any major operations, and investors say the McGees misled them.
Jack Swerling, an attorney for the couple, said they would be cleared of any wrongdoing.
"These people are innocent," Swerling said. "When the dust settles, we expect them to be fully exonerated."
Almost two years ago, the state attorney general's office fined the couple $800,000 for civil securities fraud.
A spokesman for the attorney general's office said attempts to recover these fines will be put on hold while the more serious criminal charges are pursued.
In addition to the attorney general's actions, Tracy McGee and his companies have been the subject of six lawsuits by investors, suppliers and former employees.
Many of those lawsuits have resulted in judgments against the couple. One group of investors that won a judgment is still trying to recover $500,000 it says was lost in a McGee company. |
