Two Former Corporate Executives of Samarion Inc. Charged with Securities Fraud and Conspiracy to Defraud Investors | WPN World People News

Mark E. Rodgers, 51, of Houston, Texas, the former chief executive officer of Samarion Solutions Inc., and Samer N’ser, 52, of Ridgeland, Mississippi, the former chief technology officer of Samarion Inc., have been charged with one count of conspiracy to defraud investors in the sale of securities and eight counts of securities fraud, announced U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Daniel McMullen.

The indictment in this case alleges that from approximately 2006 through 2009, Rodgers and N’Ser conspired to intentionally mislead Samarion Inc. investors in Mississippi and Alabama. During that time, Samarion Inc. (formerly known as Valence Broadband Inc.) was a corporation operating out of Madison County, Mississippi. The business plan of the company was to produce a viable monitoring system, commonly referred to as the Samarion Solution, for installation in nursing homes and elsewhere that could predict when a patient might fall, prevent abuse and/or neglect by staff, and improve the over-all care of nursing home patients.

According to the indictment, Rodgers and N’Ser conspired to fraudulently misrepresent to potential investors material facts that would affect their decision to invest, including the financial strength of the company and the true functionality and capacity of the product, among other things. The indictment alleges that Rodgers and N’Ser sold stock to investors representing that the investment funds would be used solely for the business purposes of the company and instead used the money for their own personal benefit. Rodgers and N’Ser are also facing state criminal charges in the state of Alabama.

Alabama Securities Commission Director, Joseph Borg said, “The willingness of the United States Attorney’s Office for the Southern District of Mississippi and the FBI to work jointly with state securities regulatory agencies is a vital part of protecting the public from financial fraud and exploitation. We are proud of the collaborative efforts of the federal and state law enforcement agents and prosecutors in this case.”

The case has been set for trial on May 19, 2014, before U.S. District Judge Daniel P. Jordan, III. The maximum penalty for conspiracy is five years in prison and a $250,000 fine. The maximum penalty for securities fraud is five years in prison and a $10,000 fine.

Source: U.S. Federal Bureau of Investigation