2 Baltimore Co. men charged with securities fraud

April 13, 1993|By Ross Hetrick | Ross Hetrick,Staff Writer

Accused of bilking 22 clients of more than $900,000, two Baltimore County men have been indicted on multiple counts of securities fraud, conspiracy, theft and other violations, Maryland Attorney General J. Joseph Curran Jr. said yesterday.

"It's one of the largest cases we have brought," said Melanie Senter Lubin, one of the assistant attorneys general handling the case.

Paul Gordon Henderson, 48, of Mandel Court, and Lee Paul Der, 50, formerly of the 13900 block of Mantua Mill Road, were charged in an indictment handed down by a Baltimore grand jury Thursday.

The securities charges involve alleged investments in a company called Pacific Products Corp., which was set up to import latex gloves from the Orient to be sold to U.S. health care professionals in an effort to combat the spread of AIDS, according to the attorney general. Mr. Henderson and Mr. Der were company directors, Ms. Lubin said.

According to the indictment, the two men solicited investors from offices in Lutherville.

The charges include conspiracy, sale of unregistered securities, securities fraud, fraudulent misappropriation by a fiduciary and theft dating to 1987, the indictments said.

Mr. Henderson, who was disbarred as an attorney in 1990, also faces charges of misappropriating funds from two former law clients, the attorney general's office said.

The maximum penalty for each offense of securities fraud, sale of unregistered securities and fraudulent misappropriation is five years,and the maximum penalty for felony theft is 15 years, the office said.

Ms. Lubin said Mr. Henderson turned himself in to Baltimore County police Thursday. He was released on $70,000 bail, according to the Baltimore County Detention Center.

"When the matter comes to trial, he will be fully vindicated," said Paul Mark Sandler, Mr. Henderson's attorney.

Mr. Der is out of the country, and a warrant for his arrest has been issued, Ms. Lubin said.

Christopher Grant, an investment adviser in Baltimore County, said he personally lost $100,000 in loans to Pacific Products. "It looked to be a valid business opportunity," he said.

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