The president of a Montgomery County manufacturing business has been indicted on federal fraud charges.
The U.S. attorney’s office reported that Frank Renick, 62, president of Spectrum Pet Care Inc., which manufactures pet food and products, was indicted on three felony counts of mail fraud in an investment scheme.
The indictment alleges that Renick sold over $7 million of investments in Spectrum, including stocks, bonds and promissory notes to over 250 investors in Missouri and other states between 2006 and May 2011.
A federal grand jury handed up the indictment May 30, but it remained sealed until Renick was arrested Monday, June 4.
Renick allegedly induced investors to invest substantial sums of money in Spectrum by making false representations about Spectrum’s financial condition and how the invested funds would be used. He told investors that their investments would be used to purchase equipment and to fund operations.
Although some the funds were used for the business, Renick allegedly used substantial portions to repay existing investors and to pay for his personal expenses unrelated to the business. The indictment alleges that investors lost millions of dollars as a result of Renick’s scheme.
If convicted, Renick faces a maximum penalty of 20 years in prison and/or fines up to $250,000 on each count.
The case was investigated by the Postal Inspection Service and the Federal Bureau of Investigation. Assistant U.S. Attorney Reginald Harris is handling the case
Charges in an indictment are accusations and do not constitute proof of guilt, the U.S. attorney’s office noted.