Startup's CEO Stole Investor Cash For Maserati, Jury Told

Law360 (January 13, 2020, 11:26 PM EST) -- Federal prosecutors kicked off the money laundering trial of Sanovas Inc. CEO Lawrence Gerrans on Monday, telling a San Francisco jury that the medical device startup executive embezzled nearly $3 million from investors — money he spent on a mansion, a Maserati and a $50,000 diamond ring.

“He used Sanovas as a personal slush fund,” Lloyd A. Farnham of the U.S. Attorney's Office told jurors in his opening statement.

Despite Gerrans having only $932 in his bank accounts in January 2015, two months later he managed to pay nearly $2.6 million in cash for a six-bedroom home in Marin County, California,...

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