BOSTON, Oct. 15 2004 LAWFUEL – Law, crime, legal, attorney, law firm news — The former Chief Executive Officer of
Advanced Deposition Technologies, Inc. was sentenced late yesterday in federal
court on charges that he falsely inflated corporate sales figures in order to
obtain additional funds from the company’s bank.
United States Attorney Michael J. Sullivan and Kenneth W. Kaiser, Special
Agent in Charge of the Federal Bureau of Investigation, announced that GLENN
J. WALTERS, age 49, formerly of Duxbury, Massachusetts, was sentenced by U.S.
District Judge Mark L. Wolf to 1 year and 6 months in prison, to be followed
by 5 years of supervised release. WALTERS was also ordered to a pay a $5,000
fine and pay $200,000 in restitution. On May 10, 2004, WALTERS pleaded guilty
to a single count of bank fraud.
At the earlier plea hearing the prosecutor told the Court that, had the
case proceeded to trial, the evidence would have proven that WALTERS was
formerly the Chief Executive Officer of the Advanced Deposition Technologies,
Inc. (“ADT”), a now-defunct publicly-traded corporation headquartered in
Taunton, Massachusetts. Before its collapse, ADT was in the business of
developing, selling and licensing products and technology in the field of
applying thin metallic coatings to plastic films and other surfaces.
In December 2000, in order to increase ADT’s line of credit with its bank,
WALTERS created phony documents that purported to reflect licensing fee
agreements between ADT and certain customers. Phony invoices and other
documents prepared in connection with the fraud, showed three customers owing
ADT a total of $575,000. In reality, none of the three customers had entered
into licensing agreements as of December, and did not owe the sums reflected
in the bogus paperwork. The fraud was uncovered in 2001 and, ultimately,
ADT’s loans went into foreclosure, leading to the collapse of the company.
The case was investigated by Special Agents of the Federal Bureau of
Investigation, with assistance from auditors employed by the U.S. Attorney’s
Office. It was prosecuted by Assistant U.S. Attorney Paul G. Levenson in
Sullivan’s Economic Crimes Unit.