Former CEO charged with fraud

NEWPORT NEWS, Va. (WAVY) - A Norfolk man and CEO of a Newport News-based investment firm has been indicted by a federal jury on fraud charges.

According to Peter Carr with the U.S. Attorney's Office,  46 year-old Jeffery A. Martinovich was the CEO of MICG Investment, LLC and now could face up to 520 years in prison for the 26 charges he is facing if convicted.

He is facing charges of mail fraud, wire fraud, unlawful monetary transactions and bankruptcy fraud.

Martinovich allegedly launched three hedge funds under MICG in 2007 and sought investments. At the end of each year, instead of seeking an independent evaluation of the company whose shares he purchased, Martinovich would inflate the value of the company to increase the value of the hedge fund.

He then allegedly used the inflated value to lure potential investors into investing in the company, Venture Strategies.

Venture Strategies, a solar company, declared bankruptcy. Martinovich filed for bankruptcy in February 2011 and had allegedly made a series of false statements about gambling trips to Las Vegas.