CONTINUING COVERAGE
The Journal-News will have gavel-to-gavel coverage of the criminal trial of former state lawmaker Pete Beck. Follow staff writer Michael D. Pitman today on Twitter at @MDPitmanJournal.
Vernon “Chip” DeMois, who is scheduled to testify in the criminal trial of a former Warren County state lawmaker, was found guilty Tuesday afternoon of a securities violation.
DeMois, 58, was a consultant contracted by Christopher Technologies, a failed tech firm at the center of the Pete Beck criminal trial, and is accused by the Ohio Attorney General’s Office of taking money that was meant to be an investment in the tech firm.
DeMois pleaded no contest to violating the securities section of the Ohio Revised Code, a third-degree felony. He was found guilty to what his attorney, Steven Goodin, called “a technical violation.”
DeMois faces up to three years in prison and up to $20,000 in fines. He has agreed to pay restitution of $22,000 and is set to be sentenced on May 21.
DeMois is set to testify against Beck, the 62-year-old former Mason mayor and Ohio House member who stands accused of dozens of charges — including securities fraud, theft, money laundering, perjury and engaging in a corrupt activity — for his involvement with Christopher Technologies, also known as C-Tech.
Beck faces a lengthy prison sentence as he is charged with 55 counts, though 14 counts could be eliminated.
The prosecution says Beck was a senior officer, namely the chief financial officer, but the defense says he was nothing more than a consultant and was not involved in the day-to-day operations of the company.
DeMois was hired by Christopher Technologies to provide consulting services to raise money, according to court documents. He was involved in securing a $1 million investment from the company Michael Farms. On March 8, 2010, officials with Michael Farms transferred the first of what was to be two $500,000 investments into the bank account of TML Consulting, which was owned by the late Tom Lysaght. That bank account was overdrawn by nearly $800.
Court documents indicate DeMois received $22,000 in compensation, which included a commission, for soliciting the investment.
TML was to transfer the Michael Farms money to C-Tech, STAT Surgical and MuseAegis. However, the state says that money was spent in other ways: $100,000 to Ark by the River Fellowship, paying city of Cincinnati income taxes, paying traffic tickets, repaid certain investors, and a donation to Beck’s political campaign.
In the seventh day of testimony in Beck’s trial, former Wood and Lamping attorney Lisa Remmes remained on the stand, continuing her testimony that started on Monday.
The state had her talk about Beck’s role in C-Tech. She testified to Beck creating financial documents, looking for investors and hammering out the details of an employment agreement with the company — an agreement Beck never did sign, according to his attorneys.
Senior Assistant Attorney General Jesse Kramig outlined that Beck in 2007 prepared a table that showed he was to invest into C-Tech. He also questioned her about Beck attending an Aug. 21, 2008, meeting that the tech company would “run out of money” by mid-September.
The defense said investors should have known their investment was a risk based on the fact the would have signed off on a private placement memorandum, which lays out the state of a start-up company. Remmes agreed that type of language would have been in a private placement memorandum and typically investors would sign off on it.
“Any predictions, representations — written or oral — which are not contained written in this memorandum, which do not pertain to this memorandum should be disregarded,” said attorney Chad Ziepfel as he read from the document.
He then asked: “What that sentence means (is) if someone tells you orally something different than what’s contained in this private placement memorandum, you’re supposed to disregard that oral statement. Right?”
Remmes replied, “It means what it says.”
Day eight of the trial will begin at 9:15 a.m. Wednesday in Judge John Andrew West’s courtroom.
About the Author
