Thomas Fagan is accused of using investors' money to support his gambling habit
TRENTON - The trial for a former Bergen County executive accused of stealing over $200,000 from investors began Tuesday with opening statements.
The case is being handled in Mercer County.
Thomas Fagan (New Jersey Attorney General's Office) It comes nearly three years after Thomas Fagan, former CEO and president of Allendale biotech companies Energex Systems Inc. and Arbios Systems Inc., was indicted on charges of misconduct by a corporate official, misapplication of entrusted property, money laundering and theft by unlawful taking.
Fagan is accused of stealing money that was entrusted to him by investors who believed he would use it to advance the companies.
Instead of investing it, he used it to gamble, give himself bonuses and took more for his personal use through checks and ATM withdrawals, according to an indictment from the New Jersey Attorney General's Office.
He also failed to file tax returns in 2007, 2009 and 2010, according to the office.
In 2013 Fagan settled a lawsuit with the state, after they sued him in 2011. The state accused his companies of defrauding investors out of nearly $10 million. He was ordered to pay that back as part of the 2013 settlement.
The criminal case, which is being tried by Deputy Attorneys General Peter Gallagher and Derek Miller of the Division of Criminal Justice Financial and Computer Crimes Bureau, is expected to last into July.
Anna Merriman may be reached at amerriman@njadvancemedia.com. Follow her on Twitter @anna_merriman Find The Times of Trenton on Facebook.