Hmmmm ..... I am not sure what the connection is here or who is who .....
-BUT-
This is the same address as Highcroft Racing where a bunch of NSXers met up in 2006? ( not sure of the date , could not find the thread )
Somebody is in some Deep Doo Doo .......:frown:
Danbury racing team owner faces federal fraud charges
DANBURY -- A local businessman who may have defrauded investors out of as much as $8 million was arrested on federal charges Tuesday, authorities said.
Gregory Loles, 50, the owner of Farnbacher Loles Motor Sports on Miry Brook Road, surrendered to federal agents in Bridgeport on Tuesday, shortly before being presented in court on one count each of wire and mail fraud, felonies that each carry a maximum sentence of up to 20 years in prison.
According to the arrest warrant affidavit, Loles took money from investors, including St. Barbara's Greek Orthodox Church in Orange and several parishioners, promising stable returns in excess of seven percent.
Instead of investing the money, Loles, an Easton resident, used it for "fraudulent interest payments," as well as diverting some of it "to his car racing business."
Farnbacher Loles operates a race team out of Georgia that won two national championships in the last three years. The Danbury facility was a high-performance service center that attracted clients from throughout New England.
Employees of the Danbury facility said they knew as early as the Monday after Thanksgiving that something was amiss.
Spencer Cox, a service manager with the company, said Loles didn't come into the office that week and suppliers began cutting off shipments to the company, which had nearly a dozen employees.
"There was lots of rumors out there, but nobody told us anything," he said Tuesday, adding that employees of the company haven't been paid in weeks. "We just received our pink slips yesterday."
A federal prosecutor said during Loles' court appearance Tuesday that the losses to investors are approximately $6 to $8 million, according to Tom Carson, a spokesman for the U.S. Attorney's Office.
He added that the U.S. Attorney's Office asked during the court proceeding that Loles be detained in federal custody, because "he may present a danger to himself."
Chris Caldwell, an attorney representing Loles, confirmed the businessman was taken by ambulance from his home in Easton to St. Vincent's Medical Center in Bridgeport two weeks ago. He added that Loles had been placed "in a secure area where he was under 24-hour care."
Caldwell said Loles was released from the hospital Tuesday, shortly before his court appearance, and he wouldn't have been discharged if he presented a danger to himself.
The attorney added that he has several "evaluations" he would like to have performed on Loles that could "shed some light on the present allegations."
Caldwell said there was actual investing going on, and "the church endowment fund made a significant amount of money over a period of time. I'm hoping that forensic accounting shows the church is in the black."
Whether the actual investing stopped, and when, Caldwell said he couldn't comment on.
"This is terrible for everyone involved," the attorney said, adding that Loles is cooperating with investigators. "The pain being felt by the church community is not lost on the Loles family."
According to the affidavit, the church gave Loles the authority to make investments for the endowment fund, and he engaged in a scheme to defraud investors as early as 2001.
During an interview with investigators last week, Loles admitted he "made materially false representations to investors, including the church," the affidavit said.
Loles worked previously as a stock broker and owned two capital management companies, Apeiron Capital Management and Easton Capital Management.
Caldwell said Tuesday he could neither confirm nor deny whether Loles' brokerage license had lapsed.
Loles is expected to appear again in Bridgeport federal court Friday for a detention hearing.
Joseph Martini, an attorney representing the church, could not be reached for comment Tuesday, nor could the Rev. Peter Orfanakos at the church.
Carson said the case remains under investigation.
-BUT-
This is the same address as Highcroft Racing where a bunch of NSXers met up in 2006? ( not sure of the date , could not find the thread )
Somebody is in some Deep Doo Doo .......:frown:
Danbury racing team owner faces federal fraud charges
DANBURY -- A local businessman who may have defrauded investors out of as much as $8 million was arrested on federal charges Tuesday, authorities said.
Gregory Loles, 50, the owner of Farnbacher Loles Motor Sports on Miry Brook Road, surrendered to federal agents in Bridgeport on Tuesday, shortly before being presented in court on one count each of wire and mail fraud, felonies that each carry a maximum sentence of up to 20 years in prison.
According to the arrest warrant affidavit, Loles took money from investors, including St. Barbara's Greek Orthodox Church in Orange and several parishioners, promising stable returns in excess of seven percent.
Instead of investing the money, Loles, an Easton resident, used it for "fraudulent interest payments," as well as diverting some of it "to his car racing business."
Farnbacher Loles operates a race team out of Georgia that won two national championships in the last three years. The Danbury facility was a high-performance service center that attracted clients from throughout New England.
Employees of the Danbury facility said they knew as early as the Monday after Thanksgiving that something was amiss.
Spencer Cox, a service manager with the company, said Loles didn't come into the office that week and suppliers began cutting off shipments to the company, which had nearly a dozen employees.
"There was lots of rumors out there, but nobody told us anything," he said Tuesday, adding that employees of the company haven't been paid in weeks. "We just received our pink slips yesterday."
A federal prosecutor said during Loles' court appearance Tuesday that the losses to investors are approximately $6 to $8 million, according to Tom Carson, a spokesman for the U.S. Attorney's Office.
He added that the U.S. Attorney's Office asked during the court proceeding that Loles be detained in federal custody, because "he may present a danger to himself."
Chris Caldwell, an attorney representing Loles, confirmed the businessman was taken by ambulance from his home in Easton to St. Vincent's Medical Center in Bridgeport two weeks ago. He added that Loles had been placed "in a secure area where he was under 24-hour care."
Caldwell said Loles was released from the hospital Tuesday, shortly before his court appearance, and he wouldn't have been discharged if he presented a danger to himself.
The attorney added that he has several "evaluations" he would like to have performed on Loles that could "shed some light on the present allegations."
Caldwell said there was actual investing going on, and "the church endowment fund made a significant amount of money over a period of time. I'm hoping that forensic accounting shows the church is in the black."
Whether the actual investing stopped, and when, Caldwell said he couldn't comment on.
"This is terrible for everyone involved," the attorney said, adding that Loles is cooperating with investigators. "The pain being felt by the church community is not lost on the Loles family."
According to the affidavit, the church gave Loles the authority to make investments for the endowment fund, and he engaged in a scheme to defraud investors as early as 2001.
During an interview with investigators last week, Loles admitted he "made materially false representations to investors, including the church," the affidavit said.
Loles worked previously as a stock broker and owned two capital management companies, Apeiron Capital Management and Easton Capital Management.
Caldwell said Tuesday he could neither confirm nor deny whether Loles' brokerage license had lapsed.
Loles is expected to appear again in Bridgeport federal court Friday for a detention hearing.
Joseph Martini, an attorney representing the church, could not be reached for comment Tuesday, nor could the Rev. Peter Orfanakos at the church.
Carson said the case remains under investigation.
