In a recent announcement from the Southern District of New York's Acting U.S. Attorney Matthew Podolsky, Norman Gray, the CEO and founder of a Connecticut-based biomedical company, has been sentenced to a decade behind bars for his role in scamming investors out of over $13 million. The disgraced businessman deceived investors by fabricating his educational and professional background, and by promoting non-existent healthcare projects that promised to save children with a rare disease.
A U.S. District Judge Paul A. Engelmayer handed down the 10-year prison sentence, which was uncovered following a trial that concluded on May 29, 2024, where Gray was convicted on charges of wire fraud. According to the Southern District of New York U.S. Attorney's Office, Gray presented himself to investors as a highly successful entrepreneur with supposed access to offshore trusts, false patent applications, and nonexistent medical breakthroughs, to quickly and severely leverage trust towards his fraudulent activities.
In a statement obtained by the U.S. Attorney's Office, Podolsky condemned Gray's actions, stating, "Norman Gray preyed upon people who wanted to invest in developing life-saving medicine for children with a rare and generally fatal disease. Gray gained his victims' trust by lying about everything from his educational background and to his supposed access to off-shore trusts he could use to fund his company alongside the investors." His fraudulent activities included the provisioning of falsified purchase orders for personal protective equipment (PPE) during the COVID-19 pandemic, which resulted in significant financial losses for his victims.
Gray's deception extended beyond mere financial statements; he went as far as to invent a mortgage company and to forge documents, including FBI background check records. Victim-1 was tricked into sending Gray $250,000, which was used not for investment, but to cover the CEO's personal expenditures, including the purchase of a million-dollar home and to pay down significant credit card debt. Other victims suffered comparable fates as they were lured into putting millions into a company with foundations built on lies.
In addition to the prison term, Judge Engelmayer has ordered Gray to serve three years of supervised release and to pay restitution to his victims. This includes the forfeiture of $1,467,000 and an order to repay $1,533,675 specifically to Victim-1. The coordinated efforts of Homeland Security Investigations, the New Haven Police Department, UK and Spain's law enforcement bodies, and the Justice Department's Office of International Affairs were commended by the Acting U.S. Attorney for their exemplary work which brought Gray's schemes to light.
The prosecuting Assistant U.S. Attorneys Benjamin A. Gianforti, Vladislav Vainberg, and Jessica Greenwood were noted by Podolsky for successfully managing the case against Gray, helping to ensure that justice was served for those wronged by his extensive deceit.
