ST. LOUIS -- A Macon, Mo. man was sentenced Tuesday to 78 months in prison involving his scheme to market an energy generating machine known as “Boydoplex.”
In addition to his prison sentence, David Grammer, 55, was ordered to pay restitution of $2,719,189. As part of his earlier guilty plea, Grammer agreed to the forfeiture to the government all money and property derived from the illegal activity with the understanding that the funds received through the seizure of his assets would be provided to his victims as restitution.
According to court documents, around 2004, Grammer and an associate started a venture to develop, manufacture and market an electronic device which would generate energy. Grammer was to serve as the project engineer and the associate would be responsible for raising the capital needed to fund the venture which they named Boydoplex.
The associate died in 2004 and his daughter assumed her father’s responsibilities and his 50% stake in the profits of the enterprise. Grammer was to receive the remaining half of the proceeds.
Between March 2005 and April 2011, Grammer and the associate’s daughter presented Boydoplex as being on the verge of sale for amounts ranging from $300 million to $863 million. More than 84 individuals and businesses invested over $3.3 million towards the development of the device.
Grammer falsely told investors and the associate’s daughter that he was developing prototypes and working models of Boydoplex in laboratories in Indiana and Missouri. One of the addresses he used for the fictional laboratory was property located in a state park.
In order to further the scheme, Grammer opened electronic mail accounts for the fictitious individuals and sent correspondence to his former partner’s daughter in their names. He also telephoned some investors pretending to be the fictitious individuals.
When investors questioned the delays, Grammer told them that the laboratories had been destroyed by floods and other natural disasters.
Grammer pled guilty in April to two felony counts of mail fraud.
The case was investigated by the Federal Bureau of Investigation, the United States Postal Inspection Service and the United States Trustee’s Office.
Previous stories...
Macon businessman to be sentenced for mail fraud - Wednesday, April 18, 2012
The fraud involved a scheme to market an energy generating machine known as “Boydoplex.”
NEMO man accused in securities scheme - Monday, June 06, 2011
Macon man and Columbia woman allegedly used investors money for personal use.
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