US SEC Orders Arrest of Ex-LocatePlus Holdings CEO
Judge Douglas P. Woodlock of the United States District Court for the District of Massachusetts has sentenced the former chief executive officer of LocatePlus Holdings Corporation to 60 months’ imprisonment, to be followed by three years of supervised release, and the payment of restitution to be determined at a later hearing.
Jon Latorella of Marblehead, Massachusetts, is the former chief executive officer of LocatePlus Holdings Corporation, a Massachusetts-based information technology company that sold on-line access to public record databases for investigative searches.
On November 10, 2010, the United States Attorney’s Office for the District of Massachusetts charged Latorella and former LocatePlus chief financial officer James Fields with conspiracy to commit securities fraud for their role in a scheme to fraudulently inflate revenue at LocatePlus as well as a scheme to manipulate the stock of another company.
On November 10, 2010, the same date on which the indictment against Latorella and Fields was unsealed, the Securities and Exchange Commission amended a previously-filed civil injunctive action against LocatePlus arising out of the same conduct, to add Latorella and Fields as defendants.
The SEC’s civil injunctive action is stayed until the conclusion of the criminal case, which remains pending against both Fields and LocatePlus.