Affidavit reveals more details on Hamden CEO’s $ 1 million wire fraud charge


A federal affidavit revealed more details of how a Hamden-based CEO and former Quinnipiac University professor, would have scammed an investor by giving him over a million dollars for fictitious investment opportunities.

Norman Gray, 66, CEO of a Hamden-based biomedical company, was arrested Tuesday morning and charged with wire fraud.

In 2015, Gray was also named the Carlton Highsmith Chair of Innovation and Entrepreneurship at Quinnipiac University, according to the university’s business school. There he taught entrepreneurship and undergraduate engineering students. He left the university in 2018, university officials said, declining to comment further.

According to the affidavit, the program began in August 2020, when Gray began speaking to the victim via WhatsApp and emailing him about a potential investment in his biomedical company.

The victim ultimately agreed to invest $ 250,000 in exchange for an approximate 2% stake in the company, as well as a salaried position as the company’s “investment manager”.

Gray instructed the victim to wire the money to a bank account named Sherman 695 LLC, of ​​which Gray was the sole signatory.

According to the affidavit, around September 10, 2020, the victim initiated this bank transfer from New York to Sherman account 695 in Connecticut.

On the same day, $ 16,000 was transferred from Sherman Account 695 to an account held in the name of the Biomedical Society. The next day, a check for $ 225,000 was made against the Sherman 695 account in a bank account not affiliated with the Biomedical Society.

Shortly thereafter, Gray contacted the victim again to inform him of a “friends and family” investment deal in which the “risk (was) virtually nil,” the affidavit said. He said the investment involved personal protective equipment and the victim could expect a 40% return within 90 days as two nearby universities placed orders for the equipment. None of this was true.

It is not clear which two universities were involved, but neither of them registered any protective gear purchase orders involving Gray or the biomedical company.

The victim initially declined the offer, telling Gray that she needed the money to pay off a mortgage because she was looking to buy a house. Gray then offered a line of credit against the equipment investment for one of the universities and offered to provide a bridge loan for the amount of the investment until the victim’s mortgage closed. The victim then agreed.

On approximately September 25, 2020, the victim transferred $ 500,000 from the New York City account to Sherman account 695 in Connecticut, according to the affidavit.

That same day, $ 50,000 was transferred from Sherman Account 695 to the account of a luxury car dealership in North Haven for the purchase of a vehicle.

On approximately September 28, 2020, a check for $ 160,000 was issued in the name of the biomedical company from Sherman account 695. This money was then spent on the operating expenses of the biomedical company, including mass salary.

In early October 2020, Gray told the victim he could get a mortgage for the victim’s house through a mortgage company called “Tranctus Group” in which he was an investor. Around October 15, 2020, the victim initiated a wire transfer of $ 717,000. from New York to Sherman Account 695. The next day a check for $ 200,000 was issued from Sherman Account 695 to the Biomedical Society’s account.

On October 19, 2020, the victim received an alleged mortgage approval letter from a member of the Tranctus group, but was instead a bogus personality and a bogus company created by Gray, according to the affidavit.

The victim never received a return for his investment and Gray refused to return the money.

Wire fraud carries a potential prison sentence of up to 20 years, the U.S. prosecutor’s office has said.


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