One such envelope arrived in my mailbox several months ago bearing happy news. Thomas Fagan, the former CFO of Energex Systems, a biotechnology device manufacturer based in Allendale NJ, had been ordered by a NJ state grand jury to pay $10.2 million in investor restitution to the nearly 800 investors he had defrauded via the sale of unregistered securities. I am one of those defrauded investors.
My own investment was a small one, the minimum allowable for an initial investment at a time when Energex Systems (then called Orthosonix) was little more than a glimmer in Thomas Fagan’s ambitious eye. I’d written a check to Fagan in 1999, before my wife and I had kids, when we sometimes had some money lying around. Doing the math, I can see that many investors contributed a lot more money than I did. Continue reading