October 31, 2014

The SEC announced securities fraud charges against New York businessman Gregory Rorke and his software company Navagate Inc. for making false statements to investors while raising more than $3M to fund operations.  According to the government, Rorke falsely told investors that he possessed millions of dollars in liquid assets to personally guarantee their purchase of promissory notes issued by Navagate Inc.  However, virtually all of the liquid assets and real estate he claimed as his own actually belonged solely to his wife who did not pledge any of her assets in connection with the securities offering and had no obligation to make good on Rorke’s personal guarantee.  Ultimately, Navagate defaulted on the notes and Rorke did not adhere to his promise to pay investors under his personal guarantee.  SEC

Tagged in: Misrepresentations, Securities Fraud,