David Wagner Sentenced For Securities And Wire Fraud

David Wagner Sentenced For Securities And Wire Fraud

Chairman Of Venture Capital Funds, David Wagner Sentenced To Six Years For Securities And Wire Fraud In Manhattan Federal Court

(STL.News) Audrey Strauss, the Acting United States Attorney for the Southern District of New York, announced that DAVID WAGNER was sentenced in Manhattan federal court to 72 months in prison for securities fraud and wire fraud in connection with his operation of a number of corporate entities (collectively referred to as “Downing”) as a Ponzi-like scheme. WAGNER solicited almost $10 million from approximately 40 Downing investors through materially false and misleading statements and misappropriated a significant portion of those funds, using them for, among other things, the payment of management fees, the repayment of prior investors, and personal expenses. WAGNER previously pled guilty to these charges, and was sentenced today before U.S. District Judge Alvin K. Hellerstein.

Acting Manhattan U.S. Attorney Audrey Strauss said: “The employee-investors of the Downing entities entrusted David Wagner, Chairman and CEO, to provide various means of support to their ‘portfolio companies,’ designed to bring those companies to market and ultimately result in a return on their investments.  Not only did Wagner not provide the financial support and expertise implicit in his sales pitch, he misspent those funds – which were largely from the investors themselves – for personal expenses, such a Porsche for himself and a BMW for his daughter.

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