Secretary of State's Securities Investigators Arrest Washoe County Man in Potential Million Dollar Fraud
Scam lasted at least 2 years before alleged victims filed complaint
FOR IMMEDIATE RELEASE
Contact: Pam duPré
(Carson City, NV; June 6, 2011) – Investigators with Secretary of State Ross Miller’s Securities Division have arrested a Washoe County man suspected of swindling at least eight victims out of more than one million dollars. Jack Albert Schwartz, 67, was arrested June 3, 2011. He has been charged with five felony counts of securities fraud and 10 felony counts of theft.
According to investigators, Schwartz approached his alleged victims with offers of 20% interest returned on their money invested in a number of ventures, including companies Schwartz controlled and other businesses which had signed agreements with Schwartz allowing him to raise capital on their behalf. Investigators say Schwartz deposited the investments in his own companies’ accounts, but used it for non-business expenses, including mortgage and credit card payments and deposits in his ex-wife’s account. He allegedly never turned over any of the investors’ money to the other firms or paid any return to any of the investors.
Investments made by the eight alleged victims ranged from $30,000 to $200,000. The securities Schwartz offered in return were in the form of subscription agreements and partnerships interests. The investors received reassuring email messages from Schwartz saying all was well, that “we are looking forward to a productive year in the venture industry, with our companies all progressing and growing into successful operating entities with high profits.”
“It appears that some of the alleged victims who talked to my investigators had some suspicions at some point about the validity of the securities offerings,” Secretary Miller said about the case. “I encourage anyone who has any second thoughts about an investment they’ve made to contact my office right away in an effort to protect themselves and other potential investors.”
The various entities controlled by Schwartz include:
• Sierra High Technology Ventures, LLC
• Tahoe Venture Partners, LLC
• Tahoe Venture Fund, L.P.
• Tahoe Blue Productions, L.P.
The firms with which Schwartz had written agreements to raise capital include Orthogene, LLC and Barricade International, Inc, neither of which is implicated in this case.
Securities Administrator Carolyn Ellsworth is asking any individuals who had contact with Jack Schwartz regarding any investment opportunities to contact the Secretary of State’s Securities Division at 800-758-6440.
The Nevada Attorney General’s office has filed a criminal complaint against Schwartz in Reno Justice Court.