SAN DIEGO (CN) – Margaret Grey, 38, of San Diego, and Paul Fraley of Hewitt, W. Va., bilked investors of $2.3 million for shares in their unregistered, empty shell company, Nova Gen Corp., the SEC claims in Federal Court. The defendants claimed to have a way to convert coal into “bio-diesel fuel, virtually emissions free,” but they have nothing of the kind, the SEC says.
The founder of the enterprise, Harry Grey, died in June after taking $2.29 million from at least 78 suckers, with help from his wife and his sales agent, Hewitt, the SEC says.
When Harry Grey died his widow took over the operation and, with Hewitt, sucked another $95,000 from at least 10 more suckers during her mourning period, the SEC says.
“Nova Gen is a shell of a company that has no operational technology and no revenues,” the SEC adds. It demands disgorgement, penalties and an injunction.