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Twin Cities exec charged with investment fraud
Twin Cities executive charged with securities fraud.
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A Vadnais Heights man who is accused of bilking an investor out of about $168,000 in a fraudulent stock deal faces a federal charge of investment fraud, the U.S. Attorney's office said Wednesday.
Richard Lynn Barnaby, 59, president and chief executive officer of Teledigital Inc., allegedly told an investor in 2003 that he knew Teledigital shareholders who wanted to sell their stock, and that he could facilitate a sale to the investor, according to court records.
The investor, identified in court documents only as "MM," gave Barnaby $168,402.26 in the belief it would buy 1.4 million shares of the company, the records say.
Barnaby then used the money for personal expenses, according to the U.S. Attorney's office. Barnaby also used an acquaintance's e-mail account to forward a message to MM that purportedly came from an official at Wells Fargo bank stating that the bank, acting as the stock transfer agent, was holding the stock until certain fees were paid.
Barnaby was charged by prosecutors in a document called an "information," which typically indicates a plea bargain is in the works.
Teledigital, a Delaware corporation with its principal place of business in Minnesota, sold prepaid cellular phone software services and equipment.
Matt McKinney • 612-673-7329
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