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NJ man admits $1.7M fraud involving horseshoes

NJ man admits $1.7M fraud involving horseshoes

October 26th, 2010 in News

HACKENSACK, N.J. (AP) - A New Jersey man has admitted he defrauded investors by persuading them to buy unregistered shares in a company that was supposed to make therapeutic shoes for horses competing in the Olympics.

Sixty-six-year-old Samuel Serritella pleaded guilty Monday in state Superior Court to a securities fraud charge.

The state Division of Criminal Justice says the Garfield resident received about $1.7 million from 300 investors. It says he told them his company was making horseshoes with cushioning layers of rubber, which were being used by Olympic equestrian competitors.

Prosecutors say he never bought equipment to manufacture the horseshoes and used investor funds for personal expenses.

He faces a five- to 10-year prison sentence and must repay his investors. Sentencing is set for Jan. 14.