CEO Accused of Telling a Whopper
DALLAS (CN) - A Texas grand jury indicted the chief executive officer of a so-called Amazonian timber firm, accusing him of misleading investors when he sold shares of the company.
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A Rockwall County grand jury charged Michael D. Alexander, 44, with securities fraud and one count of theft, according to the Texas State Securities Board.
Alexander is accused of raising more than $185,000 from three investors in 2007 and 2008, selling interests in Ecowood Recuperadore De Toras and Ecowood Resources International.
He is accused of lying to investors that their money would be used for company objectives and of failing to disclose that Ecowood did not own or control any licenses to harvest timber in the Amazon.
Alexander intentionally failed to disclose that he used money raised by offerings to pay his personal expenses, according to the indictment. It states that he knowingly lied "that Ecowood would be sold subsequent to the purchase of shares of stock by investors, which would result in a significant profit for the purchasers of said shares."
