The former interim chief executive of Irvine-based Ubiquity Inc. recently pleaded guilty to conspiring to defraud investors, according to news reports.
Nicholas Mitsakos admitted to one count of conspiracy to commit securities fraud and wire fraud in Manhattan federal court. In August, he was arrested and charged with civil fraud violations by the Securities and Exchange Commission and criminal fraud violations by the Department of Justice.
He was arrested in connection with the San Francisco-based hedge fund he created and managed, Matrix Capital Markets LLC. Regulators alleged that he misrepresented the fund’s performance and the amount of assets under management. The arrest was not related to his involvement with Ubiquity.
The charge carries a maximum sentence of five years, though prosecutors expect to seek a lesser sentence of 30 to 37 months, a written plea agreement said. Mitsakos agreed not to appeal a sentence of 37 months or shorter and to forfeit about $861,000 as part of the agreement, according to news reports.
Also, the New Jersey-based, transactional attorney Ubiquity used in 2013 when it went public, Gregg Jaclin, was recently indicted for his role in an alleged securities fraud scheme, according to news reports. In May 2016, the SEC filed charges against Jaclin, and a California stock promoter, identified as Imran Husain, for allegedly selling shares in sham companies. Jaclin and Husain also allegedly obstructed multiple SEC investigations into their conduct, according to news reports.
Ubiquity has been transitioning away from traditional media into augmented and virtual reality. It started in 2007 as a company that mainly did film, video production, post production and graphics, with its own studios.
