Authotecq – Operators of Authotecq Scam Sentenced to Prison by State of California | Goodman & Nekvasil P.A. May Recover Investor Losses

According to the State of California:

California Attorney General Xavier Becerra announced that three individuals have been sentenced to state prison terms ranging from three to 30 years for an over $11 million investment scheme that targeted elderly investors. In a nine-year scheme that began in 2003, four defendants — James A. Litzinger, Gregory T. Chapman, Rogel Patawaran and Wallace E. Thomas — operated a scam company, Authotecq, and sold over $11 million worth of unregistered securities. Another suspect involved in the scheme, Michael R. Diaz, remains at large. Three of the four defendants were sentenced, the fourth is deceased.

The company claimed to be developing an internet banking system with proprietary encryption technology. However, the defendants did little to develop a product and instead lined their own pockets with millions of dollars in investors’ money. Investors never received any returns on their investments. Litzinger was sentenced yesterday and received an eight-year prison sentence. Previously, defendants Chapman and Patawaran were convicted of 139 counts of grand theft and securities fraud following a jury trial in 2018. The court sentenced Chapman to 30 years; Patawaran passed away while in custody awaiting sentencing.  Thomas, who pled guilty prior to trial, was sentenced in early December to three years in state prison. The sentencing hearings finally concluded after a host of post-trial motions and hearings.

The sentencing comes following a multi-year investigation into the scheme that targeted investors, many of whom were seniors. Investors were not informed of material facts, including that:

• Salespeople were taking up to a 45 percent commission on money brought in;
• The company had received a Desist and Refrain Order from the California Department of Business Oversight to stop selling stock; and
• The defendants were mostly lining their own pockets with the balance of investor funds, spending those funds on fine dining, multiple cars, rent, and cigars.

Investors in Authotecq May Recover their Losses with Goodman & Nekvasil, P.A.

If you invested in Authotecq Goodman & Nekvasil, P.A. may help you. Goodman & Nekvasil, P.A., a Clearwater, Florida, law firm with a national practice representing victimized investors, has recovered more than $180 million dollars on behalf of victimized investors. 

All our cases are handled on a purely contingency fee basis by Kalju Nekvasil, Esq., formerly regional counsel with the NASD, now known as FINRA. Kalju Nekvasil, Esq. has practiced in this area of the law for more than 35 years. 

There is no charge for an evaluation of your case. Further, we handle our cases on a contingency fee basis. This means that unless we recover money for you, we charge no attorney’s fee. Unless you recover any money, you pay us nothing, not even the costs and expenses which the firm will advance on your behalf.

If you incurred investment losses in Authotecq and would like your case evaluated by a securities attorney (again, there is no charge for an evaluation and all cases are handled on a purely contingency fee basis), please contact us. 

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