AG Aaron M. Frey

Attorney General Aaron Frey yesterday announced that Nelson P. Cowand (a/k/a Parker Cowand,) 54, of Texas, pled guilty in the Unified Criminal Court in the Cumberland County Superior Court to Securities Fraud and Theft by Deception arising from a fraudulent healthcare investment scheme.  Under a plea agreement, Cowand will serve an 8- month jail sentence and pay restitution of $253,000 to his victims.

Beginning in 2013 while living in Maine, Cowand engaged in a multi-year scheme of securities fraud and theft in order to finance a purported drug-testing business.  Cowand made misrepresentations and material omissions of fact to induce six (6) Maine residents to pay him $323,000 for the investment.

Cowand used his personal friendships and ties to the southern Maine community to attract investors and take advantage of the trust victims placed in him.  Ultimately, Cowand diverted the victim’s money to pay himself unauthorized wages and cash withdrawals, as well as pay personal expenses such as condominium rent, retail and dining purchases, automobile loan payment and Dallas Cowboy tickets.

Under the plea agreement, Cowand has 36 months from the date of sentencing to pay back more than $195,000 in restitution.  If he pays that restitution within 36 months, he will be permitted to withdraw the plea of guilty to Securities Fraud, but will stand convicted of Theft by Deception.  If he fails to pay the restitution or comply with other terms of the plea agreement, his convictions to both the Securities Fraud and Theft will remain on his record and the Court will have the discretion to impose an additional period of incarceration and other sentencing terms.  Cowand will be responsible for paying the balance of restitution in the amount of $57,400. as part of the criminal judgment, an obligation which the Attorney General’s office will be moving to collect for the benefit of the victims.

“My Office stands ready to prosecute individuals who abuse the trust of their clients for personal gain,” said Attorney General Frey.  “Victims of securities fraud often lose substantial resources, sometimes representing much of their life’s savings.  Such crimes are becoming more sophisticated, particularly with digital and internet-based means to assist in the commissin of their crimes.  It is important for consumers to remember that if an investment sounds “too good to be true, it probably is.”

This case was investigated by the Maine Office of Securities.