Ex-CEO of Hoffman Estates company imprisoned for pocketing $2.2 million in investments
The former CEO of a Hoffman Estates pharmaceutical company was sentenced Wednesday to four years in prison for pocketing $2.2 million from investors to spend on his Michigan property, golf and yacht club dues and fund his own futures trading account, authorities say.
A federal judge sentenced Robert Tomlinson, the former CEO of Neurendo Pharma, to prison after he pleaded guilty this year to wire fraud, according to a U.S. attorney's office news release .
Tomlinson fraudulently advised corporate and individual investors that their funds would be used to operate the company and market an experimental drug to treat type II diabetes, authorities said. He told investors that they would receive a substantial payment once Neurendo's drug rights were purchased by a major pharmaceutical company, authorities said.
Instead, Tomlinson spent a majority of the funds to maintain his property in Bay Harbor, Michigan, and pay dues to local yacht and golf clubs there. According to federal prosecutors, he also misappropriated $100,000 to fund his own futures trading account and $33,000 to make donations to the Washington National Cathedral.
After pocketing the money, Tomlinson made dozens of cash withdrawals of slightly less than $10,000 from Neurendo's bank account as a way to avoid federal reporting rules, which require financial institutions to notify the U.S. Department of the Treasury about transactions of more than $10,000, authorities said.