An indictment was unsealed, implicating five ex-executives of Theia Group, Inc., an aerospace start-up, in a fraudulent scheme to dupe investors and lenders of $250 million. Charged with numerous offenses including tax evasion is Theia's founder, Erlend Olson, alongside former colleagues John Gallagher, Stephen Buscher, Joseph Fargnoli, and Jamil Swati, according to a recent announcement by the U.S. Attorney's Office.
The arrests were made in several states with Gallagher apprehended in Broomall, Pennsylvania, while the others were picked up in Albuquerque, New Mexico; Memphis, Tennessee; Rochester, New York; and Bridgeport, Connecticut. These arrests follow the Company's inability to secure promised funding for their grand satellite project, which seduced loans and investments based on fraudulent claims.
The fraud allegations involve a series of false claims, including the fabrication of non-existent government contracts and fake financial statements, which featured a made-up $6 billion escrow account and exaggerated claims about their technological capabilities. Theia, based in Washington D.C., also failed to secure the funds needed for their planned satellite launch.
Olson is accused of concealing millions from the IRS by directing his substantial compensation through a nominee entity, Meridian Vector Corporation, to cover various personal expenses—such as private jet memberships and luxury vehicles—without filing or paying taxes from 2018 to 2020. Federal investigators discovered these actions, which also included Olson avoiding tax obligations from the years 2009 through 2011.
All five individuals are facing charges for wire and mail fraud conspiracies, with Olson also facing additional charges of tax evasion. The potential penalties include up to 20 years for each fraud-related charge and up to five years per tax evasion charge for Olson. They are presumed innocent until proven guilty. The multi-agency investigation, led by the FDIC Office of Inspector General and IRS Criminal Investigation, focuses on addressing financial fraud.
The case is being managed by members of the justice system, including Assistant U.S. Attorneys Rebecca G. Ross and Joshua Gold, Senior Litigation Counsel Nanette Davis, and Trial Attorney Alexis Hughes, each providing their expertise in the matter of the alleged white-collar crimes. Sentencing will be determined based on federal guidelines and statutory considerations, as assessed by the judge.
