News and Press Releases

Two Executives of Start-up Company Charged with Securities Fraud Conspiracy

FOR IMMEDIATE RELEASE
May 11, 2011

Two executives of a start-up company based in Staten Island have been charged in an indictment unsealed today in federal court in Brooklyn with conspiracy, fraud, and money laundering arising out of their fraudulent securities offering in E-Z Media, Inc. The defendants, Angelo Cuomo and George Garcy, both served as directors and officers of E-Z Media, which designed and manufactured beverage carriers. The defendants were arrested earlier today. Cuomo’s initial appearance is scheduled for this afternoon before United States Magistrate Judge Steven M. Gold at the United States Courthouse, 225 Cadman Plaza East, Brooklyn, New York. Garcy’s initial appearance is scheduled for this afternoon at the federal courthouse in Miami, where he was arrested.

The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and Charles R. Pine, Special Agent-in-Charge, Internal Revenue Service, New York.

According to the indictment, the defendants fraudulently raised approximately $8 million from approximately 200 persons by falsely telling them that they had relationships and contracts with various well-known companies, including a nationally-known restaurant chain, to purchase E-Z Media’s beverage carriers. The defendants allegedly took approximately $4 million for their personal use by spending it on, among other things, mortgage payments on a bed and breakfast, mortgage payments on homes, and private school tuition. In addition, the defendants allegedly withdrew approximately $535,000 from E-Z Media’s bank accounts in the form of cash.1

“Protecting investors from securities fraud schemes is a priority of this office,” stated United States Attorney Lynch. “Those who engage in such conduct can expect to be investigated and prosecuted to the full extent of the law.” Ms. Lynch acknowledged the assistance of the United States Securities & Exchange Commission, which aided in the investigation and is bringing civil charges against the defendants.

“The IRS is committed to protecting investors by using all available criminal, civil, and administrative legal tools to stop investment fraud, stated IRS Special Agent-in-Charge Pine.”

If convicted, each defendant faces a maximum sentence of 20 years’ imprisonment on the securities fraud charges.

The government’s case is being prosecuted by Assistant United States Attorneys Michael L. Yaeger and Karen Hennigan.

The Defendants:

ANGELO CUOMO
Age: 62

GEORGE GARCY, also known as “Jorge Garcia”
Age: 54

 

 

 

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1 The charges are merely allegations, and the defendants are presumed innocent unless and until proven guilty.


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