On Tuesday, Samuel J. Mancini, a biking investor and former CEO of Out of doors Capital Companions, acquired a 71-month jail sentence for securities fraud.
The Colorado man fraudulently raised practically $11 million from buyers to amass prime Italian biking manufacturers, together with Gruppo Srl –the mum or dad of Cinelli and Columbus–, De Rosa, De Marchi Attire, and Limar Helmets. Nonetheless, not one of the acquisitions have been accomplished, and buyers say their investments weren’t returned.
Mancini stood accused of partaking in a “Ponzi-like” scheme, which included misrepresentations about fund operations, his background, and his contribution to the fund.
Based on the United States Legal professional’s Workplace, District of New Jersey, Mancini managed and managed Out of doors Capital Companions LLC (OCP), which he offered to be a enterprise capital and personal fairness agency. In flip, OCP served because the managing director of OCP Italia Fund LLC (OCP Italia), a non-public funding fund. Mancini used each OCP and OCP Italia to have interaction in his fraudulent scheme, through which he promised biking buyers he was elevating $20 million, together with $5 million of his personal cash, for OCP Italia to amass the aforementioned Italian legacy manufacturers. The inducement supplied to buyers was roughly 70 p.c of OCP Italia’s working earnings.
Mancini assured buyers that the acquisitions would happen quickly after the fund closed. Nonetheless, the acquisitions have been by no means accomplished, and Mancini was discovered to have repeatedly misrepresented his schooling, his funds and OCP Italia’s capability to shut on the acquisitions. He was additionally discovered to have defaulted on contracts, cast or modified paperwork and monetary information, and diverted investor funds out of OCP Italia.
Mancini was arrested in July 2021 on federal securities fraud, wire fraud and cash laundering expenses. Throughout Tuesday’s five-hour listening to, Mancini confronted a most penalty of 20 years in jail and a $5 million fantastic for the securities fraud depend.
Courtroom paperwork reveal that Choose Claire Cecchi in the end selected 71-month jail time period and a restitution of $10,615.000 to be paid again to the buyers her defrauded.
Mancini nonetheless faces a second civil case that the Securities and Alternate Fee is prosecuting.
