Some online matches are not made in heaven, as six women who were selected from dating sites found out when they became fraud victims, says a Securities and Exchange Commission complaint released Friday.
Thomas J. Connerton of Connecticut has been charged with fraud for taking $2.3 million from the women, 14 of their friends and family members, and 35 others. Connerton convinced the investors they would get returns as high as 36 times their investment for putting money into his medical glove company, the SEC says.
He claimed his company, Safety Technologies LLC., based in Simsbury, Conn., was on the verge of a breakthrough for making material for improved medical gloves that would make the company worth millions or even billions.
The SEC has obtained an asset freeze against Connerton and the company and is seeking a return of the money plus penalties. About half of the money was raised from the women and their connections.
Safety Technologies kept no financial records and Connerton was not registered with the SEC, the complaint says. Much of the money was used by Connerton for his personal expenses, including a $20,000 engagement ring for the last woman he connected with online. The complaint also says Connerton has $150,000 in federal and state tax liens pending against him.
“We charge Connerton with lying about the state of his business and exploiting personal connections to lure in investors,” says Paul G. Levenson, director of the SEC’s Boston Regional Office. “Investors beware: A rosy picture of a business that’s about to take off could still lead to a total loss of investment.”