FEDS: FRAUDSTER DUPED INVESTORS WITH FALSE CLAIMS ABOUT NASA

The founder of a nanotechnology company was arrested Wednesday on fraud charges after authorities said he accepted over $12 million from investors who were told NASA was helping him develop a breathalyzer to detect cancer and narcotics.

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James Jeremy Barbera, 64, former chief executive of Nanobeak Biotech Inc., originally called Nanobeak, was released on $1 million bail after appearing in Manhattan federal court, where he faces conspiracy, securities and wire fraud charges carrying a potential of decades in prison.

A message seeking comment was sent to his lawyer.

According to court papers, he misled dozens of investors since 2013 by telling them that his company used technology developed by the National Aeronautics and Space Administration to create a breathalyzer sensor technology that could detect cancer and narcotics.

Acting U.S. Attorney Audrey Strauss said in a release that Barbera enticed investors with claims that an institutional investor was on board, including a large publicly traded chemical company, that licensing deals were in the works and that an initial public offering of shares was likely.