- Created on Wednesday, 06 August 2014 22:38
- Written by FBI
Sacramento, California - Matthew Sarad, 40, of Bakersfield, pleaded guilty today to securities fraud, United States Attorney Benjamin B. Wagner announced.
According to court documents, Sarad lived in Folsom and was the founder and chief executive officer of Rancho Cordova-based Telomolecular Corporation. It purported to be a biotechnology startup company and claimed to have developed nanoparticle technology that could eradicate cancer and treat other age-related diseases. Between November 2005 and July 2008, Sarad solicited investors nationwide, offering them stock in Telomolecular. In selling the Telomolecular stock, Sarad made untrue statements, such as telling investors that the company believed its cancer curing products would complete clinical trials, obtain requisite government approval, make it to the market in less than three years, and had a deep management team that had experience taking companies public. Sarad collected about $6.5 million from more than 300 investors.
In addition, according to court documents, between January 2009 and December 2009, Sarad owned Folsom-based Sun Nanosystems. It purported to install solar energy systems for residential and commercial customers. It claimed to have developed nanoparticle technology that vastly increased the efficiency of solar panels. In selling the solar panels, Sarad falsely told customers and prospective customers that Sun Nanosystems worked with state-of-the-art proprietary technology that could increase the efficiency of conventional solar panels by as much as 50 percent. He claimed that Sun Nanosystems had a great deal of experience installing solar panels and had satisfied past customers. Sarad collected approximately $300,000 from customers but failed to complete installation of any solar panels.
This case is the product of an extensive investigation by the Federal Bureau of Investigation. Assistant United States Attorneys Lee Bickley and Chris Hales and Special Assistant United States Attorney David Ward are prosecuting the case.
Sarad is scheduled to be sentenced by Judge Kimberly J. Mueller on November 19, 2014. Sarad faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.