AUSTIN (CN) - Satellite Onboard Systems defrauded investors by failing to mention that its president Michael Coker and its sole manager John Madsden had conspired to commit securities fraud, shareholders say in Travis County Court.
The investors say Madsden lied to them, claiming he had been "an innocent victim of others' fraud. Further, defendants failed to disclose Coker's role in the prior conspiracy to commit securities fraud."
The Arizona Corporations Commission found the two men committed securities fraud and ordered them to cease and desist and pay more than $500,000 in restitution, the complaint states.
Madsden pleaded guilty to felony mail fraud in 2001, in connection with a company called International Global Positioning, the complaint states.
The defendants, who include SOS GPS Trac Holdings, took money for a putative global position device for automobiles, the plaintiffs say. They are represented by Joseph Brophy.
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