In a recent federal indictment, Henry Ford, who also goes by Cleothus Lefty Jackson, has been charged with carrying out an elaborate scheme of securities and wire fraud through his company, Fallcatcher; United States Attorney Jacqueline C. Romero announced the unsealing of charges that had been kept under wraps until Ford's arrest last week in Arizona, as detailed in a press release from the U.S. Attorney's Office for the Eastern District of Pennsylvania.
Ford's Fallcatcher business, which was supposedly focused on developing an electronic system for tracking medication use by addiction recovery patients, is alleged to have been a financial black hole, his inventions and promises to investors not withholding, luring about 50 unsuspecting investors to pour approximately $5 million into the project based on fraudulent pretenses including a fake letter of interest, in the spring and summer of 2018, he reportedly deceived potential investors in Pennsylvania and New Jersey with false statements about their investment's prospects, as per the U.S. Attorney's Office, Eastern District of Pennsylvania.
The indictment describes Ford's subsequent attempts to conceal his fraudulent activities from an SEC investigation initiated in the fall of 2018. It claims that he lied in SEC depositions and even went so far as to fabricate an email chain through his attorney in a desperate attempt to mislead regulatory authorities.
On top of the securities and wire fraud charges, it's alleged that Ford dipped into the fraudulently obtained investor funds of Fallcatcher for his personal use in the spring of 2019, which has also been reported on this matter, and if found guilty on all charges, Ford could be facing a daunting maximum sentence of 160 years in prison with additional fines, supervised release, and assessment costs piling on, according to the press release from the U.S. Attorney's Office.
