StratoComm's chief indicted for fraud
Defendant denies guilt in $45,000 Troy development deal
By LARRY RULISON, Business writer
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First published: Saturday, June 7, 2008
COLONIE -- The chief executive of StratoComm Corp. in Colonie was indicted earlier this week on charges related to an allegedly fraudulent real estate deal in Troy several years ago.
Roger Shearer, 61, of Latham was indicted by an Albany County grand jury on June 3 on two counts each of third-degree larceny, first-degree scheme to defraud, and securities fraud, all felonies.
The indictment was unsealed Friday. Attorney General Andrew Cuomo's office, which is prosecuting the case, said that in 2003 and 2004, Shearer allegedly solicited $45,000 from investors in a Troy waterfront development project called Gateway Commons that never materialized.
Cuomo is accusing Shearer of keeping the money after learning that the deal was going to fall through.
"My office will not stand for such abuses," Cuomo said in a statement.
A copy of the indictments lists the two investors in the deal as Charles McDonald and Dale Moretz, although no addresses are given.
Reached by telephone Friday, Shearer referred questions to his attorney, E. Stewart Jones of Troy.
Jones said Shearer is not guilty and has been repaying both the principal and interest to the investors. He said his client has even signed a confession of judgment.
"There was no crime because there was never any criminal intent," Jones said. "Roger agreed to pay them back. These were sophisticated investors. It (the project) simply was not able to get off the ground."
Shearer was arraigned Friday in Albany County Court and released under probation supervision pending a July 18 hearing. If convicted, he could face up to seven years in prison.
Although it is a publicly traded company -- the company's shares (OTC: STCO) were trading for 12 cents this week on the Pink Sheets -- Shearer's StratoComm is a relatively low-profile company in the Capital Region.
The company is developing telecommunications systems for the Third World and has a small office on New Karner Road in Colonie and a research and development office in New Jersey.
StratoComm announced a $45 million sale in Cameroon in November and a $15 million sale in Madagascar in February, but Shearer declined repeated interview requests from the Times Union to discuss the deals at those times. The company's annual report posted on the Pink Sheets Web site shows the company had zero sales and $1.5 million in losses in 2007.
Back in 2001, the Securities and Exchange Commission imposed a cease-and-desist order on Shearer, saying he violated securities regulations when raising money for two other companies he ran. As part of a settlement, Shearer neither admitted or denied the SEC's findings.
Larry Rulison can be reached at 454-5504 or by e-mail at lrulison@timesunion.com.
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