YOUNGSTOWN, Ohio (WKBN) – A Youngstown woman was sentenced Thursday for taking money from investors after prosecutors said she claimed she was starting a business that never materialized.
Andrea Trgovcich, 50, was sentenced to five years of probation, which includes six months of having her location monitored, and must also make restitution of $95,000.
In April, Trgovcich pleaded guilty to securities fraud.
Prosecutors said she established a company, Wellness Integrated Network, LLC, which was intended to develop and market a mobile- and web-based software application that would enable users to manage diet, weight and physical activities.
In September 2008, she joined a business incubator group and secured investors.
The indictment says Trgovcich then hired Betrand Gray, of Cleveland, as chief financial officer at a salary of $1 per year. He then marketed the software, falsely claiming that WIN had a letter of intent from a company that wished to purchase it.
Trgovcich raised over $578,000 from investors — using the money for personal expenses — and she failed to develop a product, the indictment says.
Gray pleaded guilty to one count of securities fraud. This June, he was sentenced to five years probation, which includes three months of home detention, and restitution in the amount of $195,000.