Ex-CEO of medical device company sentence to 11 years in prison for fraud, money laundering
SAN FRANCISCO - The former chief executive officer of a San Rafael-based medical device company was sentenced this week to 135 months in prison for wire fraud, money laundering and related charges, according to the U.S. Department of Justice.
The sentence for Lawrence J. Gerrans, former CEO of Sanovas, was handed down by U.S. District Court Judge Edward M. Chen in San Francisco.
According to U.S. Attorney David L. Anderson, Gerrans utilized a number of fraudulent methods to siphon funds out of Sanovas between Jan. 12, 2015, and March 16, 2015. For example, Gerrans transferred more than $2.6 million from Sanovas to himself and two shell companies he controlled, Halo management Group and Hartford Legend Capital Enterprises, then used the funds to make an all-cash purchase of a luxury home in San Anselmo. The home was purchased for more than $2.5 million, $2.3 million of which was laundered through Hartford Legend before being paid to the escrow account for the purchase.
Evidence at Gerrans' trial further showed that he provided false documents to the FBI during the criminal investigation, and that after he was first charged in the case he violated a court-ordered bond condition, attempted to tamper with a witness, and obstructed justice.