Former CEO Of Defense Company Sentenced To 15 Months In Prison For Defrauding Investors And Creditors

Damian Williams, the United States Attorney for the Southern District of New York, announced today that BAREND OBERHOLZER, a/k/a “Barry Oberholzer,” was sentenced to 15 months in prison by U.S. District Judge Andrew L. Carter, Jr. for soliciting investments in his defense technology start-up company on the basis of fraudulent misrepresentations regarding its financial solvency, access to cash, and use of investor funds.  OBERHOLZER was arrested in February 2021 and pled guilty in March 2023. 

U.S. Attorney Damian Williams said: “The defendant lied continuously about his company’s funding, endorsements, and capitalization to attract financing for his defense technology start-up.  Soon, he will begin serving a federal sentence.  Let this case be a warning to any entrepreneur who thinks that they can ‘fake it until they make it:’ this Office will protect investors and the public from lies designed to take their money.” 

According to the allegations in the Indictment and other filings and statements made in court:

Beginning in or around 2018, OBERHOLZER began soliciting investment in his defense technology start-up company (“Start-Up-1”), and a purported security device it had developed (“Security Device-1”), from at least two venture capital firms on false pretenses.  OBERHOLZER sent multiple emails to the firms, posing as a retired, four-star General in the United States Army (“Retired General-1”), who was employed by a private equity investment firm based in New York, New York.  Therein, OBERHOLZER, posing as Retired General-1, endorsed and solicited investment in Start-Up-1 and Security Device-1, a smartphone case that purportedly permitted its users to detect at a distance weapons or other dangerous items concealed on another person.

OBERHOLZER and his co-conspirator, Jaromy Pittario, a/k/a “Jaromy Jannard-Pittario,” also solicited investments in and loans for Start-Up-1 and Security Device-1 by falsely representing, among other things, their financial solvency, access to cash, and capitalization.  For instance, the pair repeatedly provided falsified financial statements to potential creditors to secure funding.    

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In addition to the prison term, OBERHOLZER, 40, of Calabasas, California, was fined $100, ordered to forfeit $252,862, and ordered to pay restitution in an amount to be determined by the court. 

Mr. Williams praised the outstanding investigative work of the New York Office of the U.S. Postal Inspection Service.

The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit.  Assistant U.S. Attorneys Jilan J. Kamal and Timothy V. Capozzi are in charge of the prosecution.