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Pair Surrender To Authorities In Securities Fraud Case
Both John Fussner and State Representative Peter Beck are now out on bond tonight.
Beck was processed by Hamilton County deputies late yesterday and Fussner made his way through the Justice Center Friday afternoon.
Both men were indicted for allegedly duping investors out of at least 200,000 dollars that was supposed to be going into their company, Christopher Technologies.
Local 12 News Reporter Rich Jaffe broke the story and has new information on the company.
Christopher Technologies...or Chris Tech...was pitched as an under-funded company with great technology that could make it a real money maker. The problem is the money from investors never made it to the company.
Instead, it went into private pockets...and Chris Tech is just one of the companies involved in this massive fraud. John Fussner claims to be an ex FBI Swat team member and a high risk security consultant, but it was his job at the top of a company called Christopher Technologies that now has him labeled as a fraud and a thief.
Mike Dewine, Ohio Attorney General:
"Fussner served as President of C-Tech, knew that it was insolvent and that it's liabilities exceeded it's assets and he did not disclose this information to investors."
Fussner's been indicted on seven felony charges involving securities fraud and theft. State representative Peter Beck, C-Tech's Chief Financial Officer, is facing 16 similar charges.
"Beck failed to disclose to investors the financial condition of C-Tech knowing...knowing that it was insolvent."
Christopher Technologies was a start-up software company working on programs that could track people during disasters. They had names like "pre-plan for me" and "account for me." Investigators say at least 200,000 investor dollars that were supposed to be going to the company never made it there...and C-Tech is just one of the companies involved in this investigation. The money went into outside bank accounts and private pockets...even Pete Beck's campaign fund.
"Did you and Pete Beck defraud investors out of a lot of money?...Rich, he can't say anything...Do you have anything to say to your investors? He can't say anything. He's under indictment. We plead not guilty and we're maintaining that."
Investors maintain they invested in the bogus companies because they believed in people like Fussner and Beck.
Tom Walter, Investor:
"Someone who has a CPA behind their name on their card...and the CFO of a company you trust...for example the same individual Mr Beck's the chairman of the House Ways and Means Committee...you think Governor Kasich trusts that individual to put him in one of the highest offices in the state of Ohio?"
Christopher Technologies was the top of the heap when it came to the companies investors were pouring money into. They also bought into companies called Stat Surgical...Musegeous Entertainment. Both Beck and Fussner have plead not guilty at this point, but if convicted they're looking at lengthy prison terms. It's also an ongoing case and more indictments are expected. If convicted on all the current charges, Peter Beck would spend 102 years in prison. If John Fussner is found guilty on all counts, he would be looking at 43 years behind bars.