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Case Number: 1:19-cr-00662-JHR
Judge: Joseph H. Rodriguez
Court: United States District Court for the District of New Jersey (Camden County)
Plaintiff's Attorney: United States District Attorney’s Office
Description: Camden, New Jersey securities fraud charge criminal defense lawyer represented Defendant, Karl James, 50, charged with one count of wire fraud.
James was the CEO of Gore Capital LLC, which he told others was a private equity investment firm. In February 2016, James and the victim agreed to each invest approximately $1.5 million into a company that specialized in extracting and converting cannabinoids from marijuana. They further agreed to form an LCC as a conduit for their joint investment. In April 2016, James incorporated the LLC in Delaware.
On April 20, 2016, James instructed the victim to wire his investment funds into a bank account. James falsely told the victim that the victim also had access to the account. On April 22, 2016, the victim wired $500,000 into the account. On July 12, 2016, James instructed the victim to wire the remaining $1 million of his investment, which the victim did. To induce the victim’s payment, James told the victim that he would deposit his own money into the account. In reality, James never wired or deposited any of his own funds.
James later spent $1.35 million of the victim’s funds on personal and entertainment expenses for himself.
In addition to the prison term, Judge Rodriguez sentenced James to three years of supervised release and ordered him to pay $1.35 million in restitution.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Matthew Feldman Nikic of the Cybercrime Unit in Newark.
18 USC 1343 WIRE FRAUD (DOF 2/2016 thru 08/2016)
Outcome: 05/07/2021 64 ORDERED that the Sentencing Hearing scheduled for May 19, 2021 is ADJOURNED until June 23, 2021 at 11:00 a.m. in Courtroom 5D of the United States Court House, Camden, New Jersey; and it is furtherORDERED that the parties shall submit any materials to be considered at the Sentencing Hearing no later than June 11, 2021. re 63 Letter. Signed by Judge Joseph H. Rodriguez on 5/7/2021. (db, ) (Entered: 05/07/2021)
05/07/2021 Resetting Hearings as to KARL JAMES: Sentencing RESCHEDULED for 6/23/2021 AT 11:00 AM in Camden - Courtroom 5D before Judge Joseph H. Rodriguez. (db, ) (Entered: 05/07/2021)