LawFuel.com – 08 August, 2009 – LEV L. DASSIN, the Acting United States Attorney for the Southern District of New York, and JOSEPH M. DEMAREST, JR., the Assistant Director-in-Charge of the New York Field Office of
the Federal Bureau of Investigation (“FBI”), announced that MILANA MURCIA of Greenwich, Connecticut, pleaded guilty today in White Plains federal court to conspiring to defraud investors in Regenat USA Holding Corporation. According to the Superseding Information to which MURCIA pleaded guilty and statements made in court during today’s plea proceeding:
Between May 2003 and January 2008, MURCIA, age 65, conspired with others to induce investors to “invest” or maintain their “investment” in Regenat Corp. and Regenat USA Holding Corporation (“Regenat”), which were represented to be in the business of recycling timber and waste; producing wood, charcoal,and biomass fuel; and purifying water. MURCIA, who served as Regenat’s Vice President, falsely described Regenat’s business relationships to investors, told them, among other things, that
their funds were being used for business purposes, and misled investors about a possible initial public offering of Regenat stock. As MURCIA well knew, however, a substantial portion of the $2.2 million invested in the Regenat entities was being diverted to MURCIA and a coconspirator to pay for meals at restaurants, clothes and other living expenses and to meet alimony obligations. As a result, investors never received any
return on their investments.
MILANA MURCIA pleaded guilty to a one-count superseding Information charging her with conspiring to commit securities fraud, mail fraud, and wire fraud. The charge carries a maximum term of imprisonment of 5 years and a maximum fine of $250,000 or twice the gross gain or loss resulting from the offense. MURCIA also agreed to pay more than $4.5 million in restitution to victims of the conspiracy.
Mr. DASSIN praised the investigative efforts of the FBI.
Assistant United States Attorneys NICHOLAS McQUAID and JASON P.W. HALPERIN are in charge of the prosecution.
