Boardman woman charged with 6 counts of bank fraud
A federal grand jury has named a Boardman woman and a Cleveland man in a seven-count federal bank and securities fraud indictment.
According to 21 WFMJ-TV, The Vindicator’s broadcast partner, the indictment charges Andrea Trgovcich, 50, of Boardman, with one count of securities fraud and six counts of bank fraud, alleging that she collected more than a half-million dollars from investors without ever developing or marketing a product.
In addition, the federal grand jury indicted Bertrand Gray of Cleveland on a charge of bank fraud.
According to the indictment, Trgovcich hired Gray as chief financial officer of her company, Wellness Integrated Network – which Trgovcich established in 2008. The company was intended to develop and market a mobile and web-based software application that would enable users to manage diet, weight and physical activities, based on medical history, lifestyle, cooking ability, time allowances, budget and preferences.
Prosecutors said Trgovcich was withdrawing funds from the company for personal use.
Between 2008 and 2013, investigators reported Trgovcich collected $578,869 from investors, but no product was ever developed or marketed by her company.
At an investor meeting in January 2013, Trgovcich told investors that funds they invested in WIN were gone, according to the indictment.
The indictment accuses Trgovcich and Gray of misappropriating $234,743 in investor funds.
Trgovcich was also named as a defendant in a separate civil lawsuit filed in 2013 in Mahoning County Common Pleas Court by seven of her investors.
The lawsuit alleged breach of agreement, breach of duty, unjust enrichment and fraud.