Texas man will do jail time, pay $253K for investment fraud scheme in Maine
A Texas man must serve eight months in jail and pay $253,000 in restitution after pleading guilty to charges that he bilked six Mainers in a fraudulent investment scheme.
Nelson P. Cowand, 54, admitted to securities fraud and theft by deception on Friday in Cumberland County Superior Court.
Beginning in 2013 while he was living in Maine, Cowand pursued a multiyear scheme to finance a purported drug-testing business, according to the office of Maine Attorney General Aaron M. Frey. Cowand made misrepresentations about the business and omitted material facts in order to persuade the Maine residents to pay him $323,000 for the investment.
In reality, Cowand diverted the victims’ money to pay himself unauthorized wages and cash withdrawals, as well as for personal expenses such as condominium rent, retail and dining purchases, an automobile loan payment and Dallas Cowboys football tickets.
Under the plea agreement, Cowand has three years to pay back more than $195,000 in restitution. If he pays that on time, he will be permitted to withdraw his plea of guilty to securities fraud, but will stand convicted of theft by deception. Otherwise, both convictions will remain and the court may impose additional jail time or other sentencing terms.
Cowand will be responsible for paying the balance of the restitution, $57,400, as part of the criminal judgment, an obligation which the attorney general’s office will be moving to collect for the benefit of the victims.
“My office stands ready to prosecute individuals who abuse the trust of their clients for personal gain,” said Frey. “Victims of securities fraud often lose substantial resources, sometimes representing much of their life’s savings. Such crimes are becoming more sophisticated, particularly with digital and internet-based means to assist in the commission of these crimes.
"It is important for consumers to remember that if an investment sounds ‘too good to be true,’ it probably is.”
The case was investigated by the Maine Office of Securities. Assistant Attorneys General Gregg D. Bernstein and Kendra Lychwala handled the matter for the Maine Attorney General’s Criminal Division.
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