Fallcatcher, Inc. – Complaint Filed by SEC

Fallcatcher, Inc. – Complaint Filed by SEC | Goodman & Nekvasil P.A. May Recover Investor Losses


In mid-2018, Fallcatcher, a purported biometric device and software start-up, and Ford—its founder and chief information officer, among other things, and a convicted felon— defrauded approximately fifty investors of approximately $5 million. Defendants did so by selling shares of Fallcatcher’s stock based on material misrepresentations about large insurers’ and state governments’ interest in Fallcatcher’s technology.

Fallcatcher purportedly sought to create, market, and sell biometric devices and software to track patients receiving treatment for opioid and other drug addictions in order to prevent medical billing fraud on insurers and government agencies.

In approximately June 2018, Ford—who had pleaded guilty seven years earlier to conspiracy to commit wire fraud for his role in a mortgage fraud scheme—gave a presentation about Fallcatcher to potential investors. In that presentation, which was videotaped and later circulated to other potential investors, Ford falsely claimed that well-known insurers and state governments had expressed interest in Fallcatcher’s technology.

Ford began his presentation to potential investors by showing them a copy of a letter of interest (the “Letter”)—purportedly addressed to Ford from a large insurance company that is a household name (the “Insurer”)—on a large screen. Pointing to the Letter on the screen, Ford announced: “This is why we are here.” The Letter claimed to express the Insurer’s interest in initiating a pilot program using Fallcatcher’s technology.

In his presentation, Ford claimed that Fallcatcher had offers not only from the Insurer but also from at least one other major insurance company and five states’ health agencies to begin pilot programs with Fallcatcher’s technology.

In reality, Ford knew that the Letter was fabricated and that neither the Insurer nor any other insurer or state health agency had expressed any interest in using Fallcatcher’s purported technology for a pilot program or in otherwise doing business with Fallcatcher.

Based on these material misrepresentations, Fallcatcher raised approximately $5 million between approximately August and September 2018 from about fifty investors—many of whom live in Montgomery County, Pennsylvania.

In late 2018 or early 2019, upon learning of the Commission’s investigation, Ford fabricated an email to try to conceal his fraud. The email purported to show that a consultant, retained by Ford, had sent Ford the Letter by email in January 2018. In reality, the consultant’s purported email address did not then and does not now exist. Ford later produced the fabricated email to the Commission, as if it were genuine.

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

If you invested in Fallcatcher, Inc., 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 with Fallcatcher, Inc. 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.

Investment Fraud Attorney, Stockbroker Misconduct Disciplinary Actions, Unsuitable Investment Advice, Investment Fraud, Churning, Misrepresentation and Omission of Material Facts, Elder Fraud, Unauthorized Trading, Theft, Selling Away, Unapproved Outside Business, Nationwide, PIABA, SEC, Securities Exchange Commission, NASD, National Association of Securities Dealers, NASDAQ, Dow Jones, Wall Street, New York Stock Exchange

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