Westport man sentenced to jail for defrauding investors and making false statements to SEC – The Westport Local Press
From the Internal Revenue Service
Leonard C. Boyle, Acting United States Attorney for the District of Connecticut, announced that Barton stuck, from Westport, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 12 months and one day in jail, followed by three years on probation, for defrauding investors and then made false statements to the Securities and Exchange Commission.
According to court documents and court statements, Stuck controlled related business entities including Signal Lake General Partner LLC, Signal Lake Operations LLC, Signal Lake Management LLC, Signal Lake Side Fund LP, Signal Lake Side Fund II LP, Signal Lake Side Fund IIA LP, Signal Lake Top Prospects Fund and SLT Logic LLC (collectively, the “Signal Lake Entities”). The Signal Lake entities were venture capital vehicles investing in various technology companies. Stuck solicited investments for the Signal Lake entities
In 2015 and 2016, Stuck committed fraud by distorting, among other things, the financial health and outlook of Signal Lake entities and their investments in order to make money. In one case, Stuck made false statements to an undercover FBI agent posing as a potential investor. Stuck falsely guaranteed a payment for double the initial investment of $ 500,000 and falsely claimed that a Signal Lake entity had $ 200 million in a particular bank account when in fact the bank account balance at the ‘era was $ 0.50. He also incorrectly stated that the $ 50,000 fee he needed would be used for accounting and legal fees. When the undercover agent paid Stuck the $ 50,000 fee, Stuck used it for his personal expenses.
Stuck also made false representations in forms he filed with the Securities and Exchange Commission in 2016 and 2017. Specifically, Stuck falsely claimed that a Signal Lake entity managed and had a gross asset value. of $ 145 million, and was subject to annual audits by a Stamford accounting firm.
On October 25, 2018, Stuck pleaded guilty to one count of wire fraud, one count of illegal money transactions, and two counts of misrepresenting the Securities and Exchange Commission.
Stuck, who is released on $ 100,000 bail, is due to report to jail on June 24, 2021.
This investigation was conducted by the Internal Revenue Service, the Criminal Investigation Division, and the Federal Bureau of Investigation, with assistance from the Connecticut Banking Department. The case was continued by Assistant US Attorney Jonathan N. Francis.