It was announced today that Gregory Webb, 68, of Dallas and formerly of Arlington Heights, was charged with eight counts of mail fraud and three counts of wire fraud in an 11-count indictment returned by a federal grand jury. Webb was president, chief executive officer, chairman, and the majority shareholder of InfrAegis Inc., an Elk Grove Village company that purportedly made homeland security and food safety products.
According to the indictment, between 2007 and October 2013, more than 200 investors invested more than $9 million through offering and selling stock in the company without the knowledge about the solvency and financial condition of InfrAegis. Webb allegedly knew that stock-offering materials falsely portrayed InfrAegis as a financially successful company and between 2007 and 2010, he and InfrAegis falsely represented in written materials and investor conference calls that the city of Chicago had agreed to install InfrAegis’ iaMedium; a kiosk that purportedly could detect the presence of nuclear or biological weapons, throughout the city and the agreement would result in profits of more than $80 million a year. In 2009 and 2010, it was also alleged falsely that the company had a contract with the Washington Metropolitan Area Transit Authority (WMATA) to install iaMediums throughout the Washington, D.C. Metro train system. There was never any agreement or contract to install the system in Chicago or Washington, D.C., although there was discussion with the city.
Each count of mail and wire fraud carries a maximum penalty of 20 years in prison and a $250,000 fine, and restitution is mandatory.