The principal behind Fallcatcher, a company once promising to revolutionize addiction recovery tracking, has now admitted to a scheme defrauding investors. 51-year-old Henry Ford, who also went by the alias Cleothus Lefty Jackson, pled guilty to securities fraud and wire fraud before Judge Joel H. Slomsky, reports the United States Attorney's Office. Ford is scheduled for sentencing on August 14.
During presentations to potential investors, Ford, who was running low on funding for his operations, deceitfully overstated the possibilities of Fallcatcher’s system. Fabricating interest from a major insurance company, he showcased a fraudulent letter, which, running out of time, he claimed was proof of a pilot program. Approximately $5 million was subsequently invested in the false venture by around 50 individuals, spurred by Ford's misleading tactics.
The scheme began to unravel when the Securities & Exchange Commission (SEC) initiated an investigation into Fallcatcher in 2018. Ford attempted to cover his tracks according to the prosecution - tampering with evidence and showing the SEC an email, falsified, trying to legitimize his earlier deceptions. This among others was a tactic used to stall, only serving to thicken the plot of his fraudulent acts, according to the same press release.
The case, a result of diligent FBI investigation, is being prosecuted by Assistant United States Attorneys Patrick J. Murray and Francis Weber. Alongside the criminal charges, Ford also faces civil securities fraud cases, pursued by the SEC's New York Regional Office. The full extent of Ford's legal consequences will become clear following his August sentencing.
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