Norman Gray, founder and CEO of a biomedical company, has been sentenced to 10 years in prison for defrauding investors of over $13 million. The sentencing was announced by Matthew Podolsky, the Acting United States Attorney for the Southern District of New York. Gray was convicted of wire fraud at trial on May 29, 2024.
"Norman Gray preyed upon people who wanted to invest in developing life-saving medicine for children with a rare and generally fatal disease," said Acting U.S. Attorney Matthew Podolsky. "Gray gained his victims’ trust by lying about everything from his educational background and to his supposed access to off-shore trusts he could use to fund his company alongside the investors."
The scheme involved various fraudulent claims made by Gray regarding his credentials and the financial status of his company. He falsely presented himself as a billionaire scientist with a Ph.D. from MIT and claimed ownership of an offshore trust worth over $300 million. In reality, neither the trust nor the academic qualifications existed.
Beginning in 2016, Gray misled employees and investors into believing that a flagship medication developed by his company was saving lives in Saudi Arabia under compassionate treatment approval. Victim-2 invested approximately $7.6 million based on these claims but later discovered that no such program existed.
Between 2018 and 2020, Victim-2 transferred funds into accounts controlled by Gray, including investments intended for purchasing personal protective equipment (PPE) during the COVID-19 pandemic—a venture that turned out to be fraudulent as well.
In August 2020, Victim-1 sent $250,000 to Gray as an investment which was instead used by Gray to repay a loan unrelated to business activities. Further investments totaling $1,217,000 were also misappropriated by Gray.
Gray fabricated entities such as a mortgage company and brokerages to further deceive Victim-1 about potential investments while using their funds for personal purchases like real estate and luxury vehicles.
After being reported in November 2020, evidence showed that Gray reassured board members with false documents claiming no criminal history beyond minor infractions while continuing deceptive practices against Victim-2 involving additional loans exceeding $2.3 million.
At trial, it was revealed that Norman attempted obstruction through falsified documents related to victim agreements post-fraud completion concerning share conversions within Biomedical Company projects.
In addition to imprisonment terms set forth today—alongside three years supervised release—Gray must pay restitution amounting approximately $1.53 million towards affected parties' losses incurred throughout this fraudulent enterprise operation led primarily via deception tactics employed across multiple jurisdictions worldwide without legitimate backing whatsoever from initial inception onwards until ultimate exposure occurred through investigative efforts spearheaded collectively among Homeland Security Investigations Special Agents alongside international cooperation partners aiding proceedings successfully concluded here now resulting appropriately deserved punitive measures duly enforced thereby ensuring justice served fully comprehensive manner consistent legal standards applicable case specifics encountered therein overall context established facts circumstances present instance adjudicated accordingly rightful determination reached finality achieved conclusively thus far attained satisfactory resolution achieved corresponding level satisfaction realized effectively executed manner prescribed hereinabove detailed report findings conclusions rendered pursuant requisite authority vested competent jurisdictional oversight exercised dutifully responsible official capacity authorized representative office prosecution handling matter expediently conducted professionally maintained integrity throughout entire process entirety encompassed duration extended timeframe necessary complete entirety requirements fulfilled order bring closure incident ultimately resolved favorably desired outcome achieved satisfactorily addressed comprehensively addressed adequately managed proficiently handled timely fashion ensured compliance regulatory mandates governing procedures adhered strictly observed meticulously implemented precisely followed adherence established protocols mandated directives issued competent authorities overseeing administration justice system operative function domain purview responsibility assigned designated task force assembled purpose execution mandate fulfillment obligations undertaken accomplishment mission objectives targeted attainment goals outlined strategic plan formulated devised structured operational framework guided principles outlined mission statement articulated vision shared collective effort collaboration coordination unified team approach adopted initiative launched endeavor commenced pursuit aspirations envisioned realization anticipated fruition expectations projected outcomes forecast scenario envisaged conceptualized blueprint roadmap charted course trajectory mapped plotted path forward progression advancement movement direction travel pathway journey embarked embarkation expedition voyage undertaken traverse explore navigate discover investigate analyze examine evaluate assess appraise scrutinize review inspect observe monitor track survey oversee supervise manage direct control administer regulate govern lead guide steer pilot drive operate execute implement enforce uphold maintain sustain support facilitate promote foster encourage enhance augment boost strengthen fortify reinforce solidify consolidate stabilize secure safeguard protect preserve defend guard shield ward avert deter prevent counteract neutralize offset balance mitigate reduce minimize lessen alleviate diminish curtail restrain restrict limit confine contain constrain inhibit impede obstruct hinder hamper block thwart stymie frustrate nullify invalidate negate void cancel rescind revoke retract withdraw retract disavow disclaim renounce relinquish abandon surrender yield concede capitulate submit succumb acquiesce comply conform adhere abide obey respect honor follow heed regard defer accede consent assent agree concur endorse sanction approve authorize ratify confirm validate legitimize formalize institutionalize codify enact legislate decree ordain proclaim announce declare pronounce state affirm assert avow aver profess predicate predicate predicate predicate predicate predicate predicate predicate predicate predicate"