Operations came to a grinding halt at New Jersey-based medical device company Energex Systems after founder and former CEO Thomas Fagan was accused of several financial misconduct charges including theft of investor funds, money laundering, corporate misconduct and personal tax evasion.
Some of the cash Fagan diverted from Energex Systems and a 2nd company, Arbos Acquisition partners, went to pay fora nearly $61,000 in gambling debts, if you like gambling then take a look at https://www.boomtownbingo.com/a-z-reviews
Personal vacations and political contributions to the Republican party, the North Jersey Record reported.
Investors put $9.5 million into Energex before the Fagan accusations surfaced. Most fled for the woods, leaving the company functionally inoperational. The company, which Fagan founded in 1999, has 1 FDA-approved device called the Energex, which uses a pulsed radiofreqency to relieve chronic joint pain.
The company was also developing the ImmunoModulator, designed to use UV light to inactivate HIV and Hep C pathogens in blood, which would then be put back in the patient as a self-contained treatment, according to Bloomberg.
Fagan denied charges that he stole more than $230,000 from investors, which the feds allege he used for the $60,772 gambling note, a $40,000 gift to his sister, $17,000 in personal legal costs and a whopping $114,030 in cash withdrawals, the newspaper reported.