3 men charged with swindling investors of Three men, including a Concord resident, were sued by the Securities and Exchange Commission on Wednesday on charges that they swindled kate spade outlet store near me more than $11 kate spade usa factory outlet million from investors in a skin care business that later filed for bankruptcy.
District Court in San Francisco. Norman Valine, 39, of Las Vegas, Skin Nuvo's former chief operating officer, and company co owner, 51, of Concord raised money from new investors even after suspecting that Schmidt may have embezzled funds and falsified financial records, the suit said. Valine earned $138,000 in commissions by selling Skin Nuvo interests to four additional investors, and Schmidt paid himself more than $680,000 and Gelnette about $260,000, the SEC said. "Rather than using investor funds to finance new stores, as promised, Schmidt used the money to pay the kate spade los angeles debts, construction costs and payroll for the older stores," the suit said. Reached by phone Wednesday, Gelnette said, "I haven't been served. I don't know anything about it. I'm not going to say anything about something I haven't seen." Schmidt was unavailable for comment Wednesday, and, a San Francisco attorney for Valine, declined to comment. "Skin Nuvo was projecting a glamorous image with their stores in very flashy and high end malls, kate spade new york but beneath the surface, the company was in deep financial trouble," said, an SEC supervising attorney. Skin Nuvo, based in Henderson, has since filed for bankruptcy. During the alleged fraud from 2002 to 2004, the company's Bay Area stores which sold skin care and hair removal products were located in shopping malls in San Francisco, San Jose, Richmond, Concord, Corte Madera and Walnut Creek.