FOR FURTHER INFORMATION CONTACT
AUSA VICKIE E. LEDUC or
MARCIA MURPHY at 410-209-4885
DECEMBER 13, 2007
FOR IMMEDIATE RELEASE
BALTIMORE MAN INDICTED IN STOCK PURCHASE SCHEME
Indictment Seeks Forfeiture of $233,300
Baltimore, Maryland - A grand jury indicted Ronald Kevin Bowen, age 42, of Baltimore, Maryland, today for mail fraud arising from an alleged scheme to defraud investors seeking to purchase stock in Under Armour, announced United States Attorney for the District of Maryland Rod J. Rosenstein.
“The indictment alleges that Mr. Bowen used Under Armour’s name, without the company’s knowledge or permission, to entice unsuspecting investors to give him money to purchase Under Armour stock. Through this scheme, Mr. Bowen allegedly bilked investors of over $230,000,” said United States Attorney Rod J. Rosenstein.
Special Agent in Charge (SAC) William D. Chase, of the Baltimore Division of the Federal Bureau of Investigation (FBI) stated "White Collar Crime can be an insidious offense and the economic impact affects everybody. Mr. Bowen allegedly capitalized on the success of the Under Armor Company to line his own pockets, at the expense of innocent people who trusted him. White collar crime damages the financial well being of everyone, and the FBI will vigorously investigate those who would shamelessly exploit others for personal gain."
According to the five count indictment, Bowen was a founding member of Reiley & Bowen, LLC (Bowen LLC). In August 2005, another founding member of Bowen LLC (the Co-Founder) began working as a manager of the sales operation for Under Armour, Inc., which has its principal office located in Baltimore, Maryland. On November 17, 2005 an initial public offering was held of Under Armour common stock at $13 per share.
Bowen is alleged to have devised a scheme to defraud investors seeking to purchase stock in Under Armour by persuading individuals to invest substantial sums of money with Bowen LLC. Bowen falsely represented that Bowen LLC would purchase on their behalf Under Armour stock called “friends and family stock,” which Bowen falsely claimed could be purchased through the Co-Founder’s employment with Under Armour. In fact, Under Armour never offered “friends and family stock” to anyone as part of its initial public offering.
On January 9, 2006 Bowen allegedly emailed investors falsely stating that Under Armour stock had been purchased by Bowen LLC for $13 per share and falsely advising that the market price for the stock held by Bowen LLC had increased by 172%. Beginning in January 2006, Bowen falsely stated to investors that an additional 12,958 shares of Under Armour stock were available through Bowen LLC because other investors were willing to sell the stock that they had purchased during the initial public offering.
As a result of this scheme, the indictment alleges that from November 9, 2005 to March 28, 2006 Bowen obtained 11 checks from investors totaling $233,300. The indictment seeks forfeiture of such amount.
Bowen faces a maximum sentence of 20 years in prison on each of the five counts followed by three years of supervised release. Bowen is in custody in Georgia on unrelated charges.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein commended the Federal Bureau of Investigation for its investigative work and thanked Assistant United States Attorney Marty Clarke, who is prosecuting the case.