Two men snagged in a medical device fraud investigation were charged with 61 felony crimes Friday, accused of tricking people into investing millions in a supposedly safe syringe.
Both defendants, Matthew Mazur and Carlos Manjarrez, entered not guilty pleas to all charges after investigators found records Thursday indicating the men amassed some $64 million from victims of the scheme, according to Deputy District Attorney Jennifer Gianera.
The fraud worked like this: The men would carry a prototype of a syringe called “SafeSnap” in which the needle safely folded into a container that could be thrown away.
They would tell investors they sold millions of the SafeSnap syringes, tricking them into investing in the U.S. Medical Products company, Gianera said.
“There’s no evidence the syringes were ever even produced on that scale,” the prosecutor said.
The case brought by the District Attorney’s office includes charges for 15 victims who paid $4 million to the company.
Investigators believe many more victims are out there, investing some $64 million since 2008.
Local
Those victims may not see justice because the alleged crimes could have happened outside of the statue of jurisdiction, according to the prosecutor.
The judge set bail at $2 million for each defendant for charges that include elder abuse, tax fraud, grand theft and fraud.
In court, the defendant's attorneys asked for $100,000 bail, stressing the men haven't fled during the 18-month criminal investigation.
“He does have a passport and he has traveled,” said Mazer’s defense attorney Earll Pott. “On each and every case, he has returned to the United States, despite the fact that he has known for nearly a year and a half of this investigation.”
Each defendant faces up to 40 years in prison if convicted on all charges. The next court date in the case is scheduled for March 27.
