By Rick Daysog
A federal grand jury has indicted a Folsom man for a high-tech scheme that allegedly took more than $6.5 million from 300 investors.
According to a 23-count indictment, Matthew Sarad, 38, told investors that his company Telomolecular Corp. was in the process of completing clinical trials and obtaining government approval for nanoparticle technology that could be used to eradicate cancer and treat age-related illnesses.
But federal prosecutors said Telomolecular had no completed product and that the company was not registered with the Securities and Exchange Commission as required by law.
Prosecutors also alleged that Sarad through a separate company sold $300,000 worth of solar power systems to residential and business customers in 2009 but never installed the systems.
If convicted, Sarad faces up 20 years in prison and a $250,000 fine.
The indictment comes after the SEC filed a civil suit against Sarad and his company in 2008, alleging fraud. A federal judge later ordered Sarad to pay a $100,000 fine.