ALBANY, N.Y. (Legal Newsline) - New York Attorney General Eric T. Schneiderman obtained a judgment on Friday against the CEO of CandelTronics Corporation, a Rochester-based electronics company, for allegedly defrauding investors.
CEO Salvatore Candeloro allegedly made repeated misrepresentations and omissions to promote the sale of securities to local investors. The judgment, issued by Monroe County Supreme Court Justice J. Scott Odorisi, requires Candeloro to pay $365,000 in restitution to investors and $35,000 in penalty charges.
“This judgment sends a clear message that those who commit fraud will face consequences when they rip off New Yorkers,” Schneiderman said. “There has to be one set of rules for everyone, and that includes those who would peddle a product or idea by misrepresenting the facts to investors.”
CandelTronics developed a product called ExtendIt to pull power from an outlet in a room without the use of an extension cord. Over a span of approximately 17 years, Candeloro raised more than $1.8 million from approximately 18 investors and 20 shareholders to support the product. In 2013, the investors began filing complaints with the Attorney General's Office saying they had not received any return on their investments.
Following an investigation by Schneiderman's office, a lawsuit was filed against CandelTronics Corporation and Candeloro for fraud and deceptive acts and practices in connection with the alleged investment scheme.
As part of the judgment, Candeloro is barred from owning, operating or managing a business in New York and from engaging in any business relating to the purchase or selling of any securities issues within New York.