A federal grand jury has indicted a Lexington business owner on charges that he scammed investors out of $1.2 million.
Douglas Patrick Healy, 48, of Nicholasville was indicted on a charge of wire and securities fraud, stemming from an investigation led by the U.S. Secret Service and the Kentucky Department of Financial Institutions.
The indictment accuses Healy of misrepresenting the success of his digital storage card business, lying about the company's product and telling his investors that he was convicted of forgery in 2001 when he'd been convicted for stealing corporate funds. It also says Healy lied about the details of his pardon for the offense in 2007. When investors asked Healy why they weren't hearing from him more regularly, Healy told them he was suffering from cancer, the indictment alleges.
Many of the defrauded investors were from Utah.
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If convicted, Healy could face a maximum sentence of 20 years in prison.